House Republican leaders are making last-minute changes to their tax bill in an attempt to win over skeptical members within their own party, crafting a provision that would allow Americans to deduct their local property taxes from their federal taxable income.
House Ways and Means Committee Chairman Kevin Brady (R — Texas) had planned for months to prohibit people from deducting any state or local taxes from their federal taxable income as part of a sweeping overhaul of tax rules, but huge pushback from Republicans in states like New York and New Jersey precipitated the change. Discussions are still ongoing and the precise details of the change couldn't be learned.
Brady told reporters Monday that the ability to deduct property taxes from federal income would now be one of just three items that Americans could claim on a postcard-style filing system that the GOP is trying to market as a way to simplify the tax code.
"Right now on the postcard will be the mortgage deduction, the charitable [giving deduction] and the property tax deduction," Brady said.