Trump is considering overhauling a key part of his tax plan after Republican blowback

President Donald Trump is considering reversing course on one of the biggest planks of his tax reform plan, according to a new report.

Bloomberg's Kevin Cirilli and Sahil Kapur reported Thursday that Trump may keep the state and local tax (SALT) deduction in place after calling for its elimination in the most recent framework released on September 27.

The SALT deduction allows people to slice off what they pay in state and local taxes from their federal tax bills. The benefit for the tax primarily goes to states with high-income taxes. Notably, people in New York, New Jersey, and California receive about one-third of the total benefits from the deduction.

Trump is concerned that eliminating the deduction would harm some middle-income Americans, according to Bloomberg, which would run counter to his pledge that the plan would benefit middle-class workers.

Reversing course on the SALT deduction would also alleviate concerns from Republican lawmakers in states that receive a lot of the benefits. GOP members in the House from New York, New Jersey, and Massachusetts have expressed concerns about getting rid of the deduction.

If Trump preserves the deduction, however, that would force lawmakers to scramble to make up lost revenue they expected would come from the deduction's elimination.

According to the Tax Policy Center, eliminating...

26 Published By - businessinsider - 2017.10.12. 16:55
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