House passes its version of tax reform

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The House has passed a sweeping Republican tax bill that cuts taxes for corporations and many people — but hammers many New Yorkers because it eliminates deductions for state and local taxes.

The victory puts the GOP a step closer to giving President Trump a legislative achievement after nearly a year of failures.

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House passes its version of tax reform

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The House voted 227-205 to approve the bill, which would bring the biggest overhaul of the US tax system in three decades.

No Democrats supported it and 13 Republicans — including Long Island Reps. Lee Zeldin and Peter King — also opposed it because of the elimination of the SALT deductions.

House passes its version of tax reform

Most of the House bill’s reductions would go to business.

Both the Senate and House would slash the 35 percent corporate tax rate to 20 percent and reduce levies on millions of partnerships and certain corporations, including many small businesses.

Personal income tax rates for many would be reduced through some deductions, and credits would be reduced or eliminated.

But projected federal deficits would grow by $1.5 trillion over the coming decade.

“I just have too many constituents who are going to see their taxes go up,” Zeldin told the New York Times.

“You’re taking more money from a place like New York in order to pay for deeper tax cuts elsewhere,” he said.

Gov. Cuomo ripped the bill because of the elimination of the SALT deductions.

“The House Republican tax bill is a targeted assault on New Yorkers that will deliver a catastrophic blow to our economy. Any member from New York that votes for this bill is voting to take billions of dollars from middle class New Yorkers and send that money to corporations, billionaires, and other states,” he said.

Earlier, President Trump went to Capitol Hill and urged House Republicans to approve a near $1.5 trillion tax overhaul as the party prepared to drive the measure through the House.

And across the Capitol, Democrats pointed to new numbers showing the Senate version of the plan would boost taxes on lower and middle-income Americans.

“He told us that we have this once-in-a lifetime opportunity to do something really bold, and he reminded us that is why we seek these offices,” Rep. Steve Womack, R-Ark., said of Trump’s closed-door pep rally. “And here we are on the cusp of getting something really important done.”

But a similar plan approaching approval by the Senate Finance Committee encountered its latest obstacle, this time in the form of fresh projections from Congress’ nonpartisan tax analysts.

The new numbers from Congress’ Joint Committee on Taxation showed that beginning in 2021, many families earning under $30,000 annually would face higher taxes under the Senate package.

By 2027, families making less than $75,000 would face tax boosts while those making more would enjoy lower levies.

Oregon Sen. Ron Wyden, top Democrat on the Finance panel, said the new projections showed the tax bill was “just shameful” because middle-class families would “get hammered.”

With AP