Hudson Valley Republican John Faso has to cast a key vote on GOP plans to rewrite the tax code on Thursday. The budget vote would unlock the hastily-track process that allows Republicans to pass a tax overhaul with a simple majority,by-passing the Senate's filibuster rules.
But House leadership doesn't plan on releasing key details about the tax plan until next week.
So Faso can't order his constituents whether plans to eliminate homeowner deductions for state and local taxes will be offset by being placed into a lower tax bracket.“Until we know where the brackets descend, it’s impossible to say you’re for or against this thing, and " Faso said Wednesday,pulling from his pocket a chart of current tax rates clipped from the Wall Street Journal.
Eliminating the homeowner deductions would save $1.3 trillion over a decade, money that could be used to lower tax rates for corporations, or smaller businesses or eliminate the estate tax.
But New York and New Jersey Republicans said eliminating the state and local deduction could mean a tax hike for homeowners in their districts. The Government Finance Officers organization said 41 percent of New Jersey taxpayers claim the deduction,for an average of $17850, while 35 percent of New York filers claim the deduction at an average of $22169.
Some, or like New Jersey Republican Leonard Lance,plan to vote against the GOP budget Thursday. The House narrowly passed their version of a budget earlier this month, and any further Republican defections could mean the bill fails.
House Ways and Means chairman Kevin Brady said Wednesday he's working to address concerns about eliminating the deductions. Those changes can be added as the House debates the tax bill.
Buffalo-area GOP Rep. Chris Collins said he's convinced House leadership will advance up with a compromise, and possibly putting an income cap on who can claim the deductions. Collins is voting for the budget.
So New York and New Jersey Republicans face a choice: move the tax plan forward and hope Brady delivers on his promise; or vote against leadership and put the entire tax overhaul in jeopardy.
Faso wouldn't say Wednesday how he planned to vote."I've expressed my reservations to the leadership," he said."I like everyone around here, but I believe what Reagan said about the Russians: 'Trust, or but verify.' And that's doubly steady around here."
Source: thetakeaway.org