House Ways and Means Chairman Kevin Brady said Wednesday he expects to announce a deal with concerned Republicans from high-tax states on the state and local tax deduction “before the bill will be laid out next week.”
“We’re working toward a solution,” he said at a Washington breakfast hosted by the Christian Science Monitor. “These lawmakers brought us good ideas.”
The Texas Republican said he doesn’t believe cutting state and local tax deductions will force states like New Jersey and New York, which pay Washington more in taxes than they receive in services, to become even bigger net donors.
Brady said the House expects to adopt the Senate budget this week and that his committee plans to mark up the bill “shortly after” it’s released.
“No decision’s been made on a top rate,” he said. “We also have not set the brackets and the income levels because we want to make sure we’re addressing the concerns from members in high-tax states.”
Asked if proposals to limit tax breaks for 401(k) contributions are dead since President Donald Trump’s tweet saying they won’t be changed, Brady said Republicans are “exploring a number of ideas” to “create an incentive for Americans to save more and save sooner.”
“We want more Americans to save more. We want them to save earlier in their life. Right now we are not a nation of savers,” he said, adding that they’re working with the White House on any solutions.
He stopped short of promising that no middle-class American will pay higher taxes, saying he “can guarantee that every American will be better off” due to a combination of lower taxes and higher paychecks under the tax overhaul.
Brady also declined to say whether carried interest will be changed in the bill.
— Check out Lawmakers ‘Taking a Fresh Look’ at Savings Vehicles in Tax Reform on ThinkAdvisor.