Congressional Republicans claimed they had a deal Tuesday to save at least some federal deductions for state and local taxes.
The so-called SALT deduction are crucial to residents of high-tax states such as New York, New Jersey, Connecticut and California.
Republican lawmakers in those blue states are demanding that any final tax bill that ends up on President Trump’s desk restore state and local deductions eliminated in House and Senate versions of their massive IRS overhaul.
Congressman Pete Sessions (R-Texas) said there was an agreement between House and Senate negotiators on how to address SALT, but didn’t offer any specifics.
“It’s a huge issue in districts and there’s an agreement about how they are going to approach it and I just want to see that issue taken care of,” said Sessions, chairman of the House Rules Committee.
“Once again, we’re in negotiation, and sometimes when you negotiate you have to decide what you’re willing to fight for and we need to fight for that.”
Both the House and Senate bills scale back deduction for state and local taxes, limiting it to $10,000 in property taxes.
GOP negotiators hope to strike a deal between the House and Senate versions by the end of the week.
With Post Wire Services