Republican leaders are considering putting limits on the $1.3 trillion state and local tax deduction -- instead of eliminating it -- in order to secure votes from members in the hardest-hit states.
House Ways and Means Chairman Kevin Brady discussed options at a dinner Monday night with several GOP members who have defended the break. They talked about measures including capping the deduction for top earners, and allowing individuals to choose between deducting mortgage interest or property taxes -- but not both -- when calculating their taxes, according to several dinner attendees.
“So if somebody’s got a $10 million home, they can only deduct on the first million,” said Representative Chris Collins of New York, describing how one of the changes might work. Collins, an ally of President Donald Trump, said he attended the dinner.
Collins said the purpose of the meeting with Brady was to find “a way to get the California, New York and New Jersey Republicans on board for tax reform.”
“They’re going to need our votes," he said.
Collins said Brady was "very open" to his concerns, and he "came away with a very good, optimistic feeling there’ll be an accommodation made for the SALT deduction."
Emily Schillinger, a spokeswoman for the Ways and Means Committee, had no immediate comment Tuesday.
Representative Rodney Frelinghuysen, a New Jersey Republican who chairs the Appropriations Committee, said members in "six or seven states" are concerned about the state and local tax deduction.
"We’re going to work our way through that," he said.
Representative Jeff Denham of California said his state’s high taxes would put his constituents at a disadvantage if the state and local break is eliminated.