WASHINGTON- Senate Minority Leader Chuck Schumer (D-N.Y.) on Thursday warned House Republicans representing suburban districts that they might suffer at the ballot box if they vote for a tax reform bill because the upper chamber’s version of the legislation reportedly would eliminate state and local tax deductions.
“The fact that the Senate bill by every report is going to remove the entire deduction for state and local deductibility pulls the rug out from any House Republican who thought they might be able to hide behind the compromise,” Schumer said at a news conference in reference to the House bill which was amended at the request of GOP lawmakers from highly populated states to include a provision permitting state and local property deductions that do not exceed $10,000.
Schumer explained that budget reconciliation constraints would in the end force House Republicans to abandon the compromise on deductions.
Reconciliation lowers the threshold for breaking a filibuster and allows the Senate to pass tax reform legislation without any Democratic support.
The legislation cannot increase the projected deficit by more than $1.5 trillion if it is to conform with reconciliation rules and right now Republicans lawmakers are struggling to meet those constraints.
The Senate bill reportedly would phase-in the lowering of the maximum corporate tax rate from 35 percent to 20 percent over two years whereas the House bill would make the change retroactively.
The Senate bill reportedly would reduce the estate tax whereas the House bill would eliminate it.
The Senate bill reportedly would amend to the tax code to include between five and seven income tax brackets whereas the House bill would reduce the number of brackets to no more than four.
The House Ways and Means Committee is expected to complete its markup of the legislation this afternoon and vote the bill out of committee.
A floor vote could occur as early as next week.