WASHINGTON (CBSNewYork) — The House of Representatives and Senate announced Wednesday they’ve reached a deal on the GOP-led tax plan.
As CBS2’s Dick Brennan reported, President Donald Trump says the bill will lower the average American’s tax bill, but it has some local lawmakers worried about state, local, and property taxes. They say that people in our area will still be hurt by it, so they continue to fight it.
“As we speak, Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages, and massive tax relief for American families and American companies,” Trump said Wednesday afternoon, appearing with American families at the White House.
He said he wants to vote on a new tax bill next week, as senators and members of Congress are melding their two bills into one finalized version which the president said closes special interest loopholes.
“It lowers tax rates for families and our plan also cuts taxes on businesses, which is expected to raise income by an average of more than four thousand dollars,” Trump said.
The president has said he would agree to a 21 percent corporate tax hike, down from 35 percent but slightly up from the 20 he had previously mentioned.
It will lower the top tax rate to 37 percent from 39.6 percent. The new version would also compromise on the mortgage interest deduction and put it at $750,000, down from $1 million, and allow individuals to choose between deducting $10,000 in income and property taxes.
Some local lawmakers are not happy with the deal.
“That’s not really gonna help anyone on Long Island, because you have to use it for one or the other and almost everyone on Long Island would have a ten thousand dollar property tax already,” Republican Congressman Peter King said. “The fact that you are extending it to the income tax, you have to pick one or the other, that’s not gonna help New York.”
Lawmakers say the compromise is really aimed at people living in California, where state and local taxes are the primary issue.
“If you’re from the state of California you are relying less on property taxes, but your income tax rate is the highest tax rate in the country,” Republican Congressman Lee Zeldin said.
It seems that GOP leaders are confident they have the necessary votes in the House, but it’s a different story in the Senate. The president says he’s not sure what exactly to expect.
“We have a margin now of two, plus our great vice president,” he said. “So I think we’re going to get the vote.”
Trump says if Congress sends him a bill before Christmas, he would sign it. If that’s the case, the Internal Revenue Service says Americans will see lower taxes beginning in February.