GOP tax reform bill passes House by big marginPosted: Updated:
The house approved tax bill is now on its way to the Senate, despite bipartisan opposition from New York lawmakers.
Democrats and some New York Republicans say the House tax plan is unfair because it is penalizing the highest-taxed states, such as New York, New Jersey and California.
With 227 Republican votes, the House passed the most sweeping tax overhaul in three decades as lawmakers seek to enact $1.5 trillion in tax cuts.
But the concern is New York residents and those who live in other high tax states would lose all or most of their single most popular tax break, which is the deduction for state and local income taxes.
Most of the people who itemize on their tax forms claim the state and local tax deduction, also known as SALT, which is where they deduct their state and local sales, income and property taxes.
Under the House Tax Cut and Jobs Act, the bill would still allow a deduction for up to $10,000 in property taxes.
That would save most homeowners in upstate New York from losing the deduction.
However, that wouldn't be the case in New York City or the suburbs.
In Westchester County for example, the average property tax bill is $15,000.
Some say this bill exposes the high taxes created by Albany lawmakers, and it may force them to do something about it. Other state legislators say it's unfair to expect New Yorkers to pay for the rest of the country.
"In its current form, this bill doesn't give tax relief to the people I represent. In fact, what it does, it puts the burden to pay for the tax cuts for the rest of the country on New Yorkers, particularly people in New York City," says Rep. Dan Donovan.
The next step is the Senate has to approve its version of the tax bill, then lawmakers will have to figure out a way to combine the two to create one plan.
GOP lawmakers say they want to have that final bill ready for the President Donald Trump to sign before Christmas.