A potential significant revenue raiser in the Trump tax plan is already facing resistance from Republican lawmakers in high-tax states. Taking this off the table could make it that much more difficult to pass tax reform given the $1.5 trillion limit on deficits.
President Donald Trump’s tax overhaul package is getting resistance from an unusual alliance of interests opposed to his plans to scrap the federal deduction for state and local taxes. Republican lawmakers from high-tax states such as New York, California and New Jersey, along with labor unions and business groups like Realtors, are pressing the Trump administration to reconsider plans to eliminate the deduction. These groups are wary of the financial pinch their constituents could feel.