While eliminating state in addition to local tax deductions will “hurt in some places,” the item’s something that will has to be done, Sen. David Perdue, R-Ga., told CNBC on Tuesday.
While the Senate Finance Committee is actually working on its product of the tax bill, the draft of the GOP House tax bill released last week included the repeal of the deductions for state in addition to local income tax (SALT) payments.
“There’s no reason within the planet … that will a couple with two children in Iowa pay more federal tax than the same couple with two children, same income, same deductions, in California,” Perdue said in an interview with “Power Lunch.”
“We’re going to clean that will up. Create a more level playing field, both on the individual side in addition to on the corporate side as well.”
brand-new York, California in addition to various other high-tax states could be hard hit by the removal of the deduction, a fact seized upon by Democrats to bolster their argument that will Trump’s plan is actually a gift to the wealthiest Americans in addition to the corporate sector.
House Ways in addition to Means Chairman Kevin Brady has said lawmakers could have a chance to propose modifications to the bill. The House is actually marking up, or debating in addition to amending, the legislation, that will week.
Brady has already agreed to retain the deduction for property tax payments up to a cap of $10,000 as part of a SALT compromise in addition to has said he could be open to raising the item.
Meanwhile, the item’s unclear when Senate Republicans will Discharge their tax bill. Senate Majority Leader Mitch McConnell said Tuesday the item could be out on Friday, although his spokesperson later said he misspoke. Earlier within the day, Sen. Orrin Hatch, R-Utah, chair of the Senate Finance Committee, told NBC News the proposal could be released Thursday.
McConnell also said the chamber will aim to mark up its legislation next week.
Ultimately, the Senate bill could have to be reconciled with the House product before the item is actually sent to President Donald Trump to sign.
Perdue told CNBC he’s optimistic Republicans will wind up with tax legislation that will will cause the economy to “definitely pop,” noting that will that will is actually “what America wants.”
“We’re in a Great position to get that will across the line. The president wants to get that will done within the House in addition to Senate, get the item passed by Thanksgiving so the item’s on his desk by Christmas.”
On Tuesday, Fitch Ratings said the proposed cuts will not pay for themselves through growth in addition to will “significantly” add to the long-term U.S. debt.
— CNBC’s Jacob Pramuk in addition to Reuters contributed to that will report.