Tax Reform Update

As Congress heads towards the end of President Trump’s first year in office, the House begins acting on the promised tax reform legislation. The House push to adopt tax reform legislation will continue for the next several weeks with committee hearings, debate, and ultimately a vote. Supporters of the legislation who claimed that it would simplify the tax code, reduce middle-class taxes, increase jobs, and help small businesses praised the strictly partisan tax bill.

Detractors argued that it would benefit wealthy Americans and large corporations, and hurt individuals who live in more heavily taxed states like New Jersey, New York, Massachusetts, and California, in large part because the bill would eliminate the state income tax and sales tax deductions that are important to many taxpayers. Unlike the Senate version, this bill would retain the property tax deduction.

That perspective is supported by a report by the Government Finance Officers Association (GFOA) that documents the impact the elimination of state and local taxes would have on states and localities. In a letter to House Ways and Means Committee Chairman Kevin Brady (R-TX), NARC and 28 other organizations expressed their opposition to those provisions. Use this template to let your representatives know that they must preserve all state and local tax deductions.

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