Peter T King

In House, California Dreamin’ on Tax Deductions
Tax break for state income taxes are back in negotiations on measure

House Majority Leader Kevin McCarthy and South Dakota Rep. Kristi Noem leave a House Republican Conference meeting in the Capitol on Wednesday. (Tom Williams/CQ Roll Call)

House Republican leaders and tax writers are working to at least partially revive the state and local income tax deduction in a bid to solidify support from California GOP lawmakers in any final tax bill.

House Majority Leader Kevin McCarthy, himself a Golden State Republican, said Wednesday the proposal he’s discussing to restore the income tax deduction would be as an alternative, not in addition, to the break for property taxes.

Income Tax Deduction on Table to Attract California GOP Votes
“It would make a lot of difference to me,” Rohrabacher says

California Reps. Darrell Issa, left, and Dana Rohrabacher voted against the GOP tax bill because of concerns over the curtailing of the state and local tax deduction. (Bill Clark/CQ Roll Call file photo)

House Ways and Means Chairman Kevin Brady confirmed Wednesday that at least a partial revival of the state and local income tax deduction is under consideration as part of the tax code overhaul, but did not provide details.

“We just continue to explore ways to make sure that we provide tax relief to families regardless of where they live,” the Texas Republican said. “That’s a commitment I’ve made to lawmakers in high-tax states and I’m going to continue to work to improve it.”

Opinion: The GOP Tax Bill — All Hat and No Rabbit
Even passing no legislation might be a better option

From left, House Majority Leader Kevin McCarthy, Ways and Means Chairman Kevin Brady and Majority Whip Steve Scalise celebrate during a news conference after the chamber passed the GOP tax bill. (Tom Williams/CQ Roll Call)

All politics is state and local.

That update of Tip O’Neill’s dictum is inspired by the Republican tax bill. The legislation that passed the House on Thursday eviscerates the deduction for state and local taxes and the current Senate version, which just emerged from the Finance Committee, eliminates the write-off entirely.

Photos of the Week: Taxes Dominate, Bible Museum Opens and Trump Visits
The week of Nov. 13 as captured by Roll Call’s photographers

Virginia Rep. Scott Taylor sits on the House steps to shoot a selfie video about his vote on the tax overhaul Thursday. (Bill Clark/CQ Roll Call)

Taxes once again dominated action on the Hill, with the Senate Finance Committee marking up its plan while the House passed its version of a tax overhaul by a 227-205 vote Thursday. 

Meet the Republicans Who Voted ‘No’ on the Tax Bill
13 GOP members, most from high-tax states, voted against leadership

California Rep. Darrell Issa, who voted “no” on the House GOP tax bill, finds himself in a Toss-up re-election race. (Tom Williams/CQ Roll Call file photo)

House Republican leaders cheered passage of their sweeping tax overhaul Thursday, but 13 GOP lawmakers bucked their party and voted against the bill. 

All but one of them hailed from New York, New Jersey and California — each a high-tax state. These lawmakers largely opposed the legislation because it curtailed the state and local tax deduction, also known as SALT. The measure caps the deduction for property taxes at $10,000 while eliminating the tax break for state and local income or sales taxes. 

At the Races: Moore Problems for GOP Ahead of 2018
GOP leaders struggles with Moore, and Northeastern Republicans face tough tax vote

Alabama GOP Senate candidate Roy Moore holds his book titled “Abuse of Power” about the Supreme Court’s same-sex marriage decision at a county GOP meeting in Valley, Ala., back in August. (Bill Clark/CQ Roll Call File Photo)

Keep track of House and Senate races with At the Races! If you want to receive this weekly newsletter, make sure to sign up *here.* And we want to hear from you! Send us an email at attheraces@cqrollcall.com with your questions, tips or candidate sightings. — Simone Pathé and Bridget BowmanThis week…  More women accused Roy Moore of sexual misconduct, Republicans tried to figure out what to do about it, and some vulnerable members faced a tough choice on taxes. Here’s what happened At the Races:

Moore Problems: Allegations of sexual misconduct have upended the Alabama Senate race with GOP candidate Roy Moore accused of sexual assault, and sexual and romantic advances toward teenage girls when he was in his thirties. (Moore has denied any wrongdoing.) 

House Approves GOP Tax Overhaul
Thirteen Republicans votes against their leadership’s measure

New York GOP Reps. John J. Faso, Dan Donovan, Lee Zeldin and Peter T. King explain their opposition to the GOP tax overhaul bill. (Bill Clark/CQ Roll Call)

Step one complete.

House Republicans on Thursday passed their tax overhaul bill, 227-205, which will now go to the Senate and be used as a vehicle to pass its own measure. Thirteen Republicans voted against the measure; no Democrats voted for the measure. 

Vulnerable Republicans in Political Catch-22 on Tax Overhaul
Democrats will attack them for the GOP tax plan even if they vote against it

New York Rep. Dan Donovan said the tax plan “kills the people who I represent.” (Bill Clark/CQ Roll Call)

It’s decision time on the ultimatum Republican leaders have been issuing to members all fall: Pass a tax overhaul or wave the House majority goodbye. 

But some of the party’s most vulnerable members, many from high-tax states in the Northeast, have come out against the House tax plan over its curtailing of deductions for state and local taxes and mortgage interest. Others are still undecided, afraid of how the measure will affect their districts. 

Ready or Not, House Republicans Set Vote on Tax Overhaul
But floor delay remains a possibility as GOP leaders wrangle votes

Speaker Paul D. Ryan said the health care debate taught him not to set an “artificial deadline” for passing legislation. (Tom Williams/CQ Roll Call)

The scenario is all too familiar: House Republican leaders schedule a floor vote on a major legislative priority and exude confidence the bill will pass despite a chorus of rank-and-file concern. 

GOP leaders insist the tax overhaul they plan to vote on this week is different from the health care bill they had to pull from the floor this spring. But the reality is they are still wrangling the 218 votes needed to pass their tax measure. A possible repeat scenario of the health care debacle looms.

House Republicans Raise Red Flags Over Senate Tax Bill
Differences on estate tax, state and local tax deduction could cause issues

Rep. Scott Perry, R-Pa., has concerns about the Senate not repealing the estate tax and worries the House have to vote on the Senate version of the tax overhaul bill. (Photo By Bill Clark/CQ Roll Call file photo)

The tax overhaul bill the Senate released Thursday could create problems in negotiations with the House, given its divergence on key areas like the estate tax and the state and local tax deduction.

House conservatives are already firing warning shots that some aspects of the Senate bill are unacceptable, like a one-year delay in the corporate tax rate cut and preservation of the estate tax.