Republican Rep. Dan Donovan told CNBC on Thursday he voted “no” on his party’s tax reform bill because the idea is usually “unfair” to the state he represents: brand new York.
The House bill adjustments the provisions which allow people to deduct state as well as local taxes however leaves a deduction on up to $10,000 in property taxes in place. The current Senate bill, meanwhile, completely eliminates all state as well as local tax deductions.
brand new York, along with California as well as brand new Jersey, is usually a high-tax state which can be hurt by the scrapping of the common provisions.
“I am in favor of reforming our tax code. the idea’s over-burdensome, the idea’s complex, the idea’s unfair. however the one thing which we have to do is usually make sure which all Americans receive a tax cut,” Donovan said in an interview with “Power Lunch.”
The House passed its legislation on Thursday with 227 votes in favor as well as 205 against, including 13 Republicans. The Senate Finance Committee is usually likely to vote Friday on whether to advance its measure to the full chamber.
brand new Yorkers “deserve the same break which the rest of America is usually going to get as well as not pay for the tax cut which the rest of the nation is usually going to see,” Donovan said.
In fact, he said, brand new York is usually a “donor state,” because for every $1 the idea sends to Washington the idea gets less than 80 cents back.
“When people talk about This specific deduction being a subsidy for brand new York, no one is usually subsidizing brand new York. brand new York is usually subsidizing the rest of the nation,” he said.
Donovan said he believes there is usually a compromise, which he has proposed along with Rep. Peter King as well as Rep. Lee Zeldin. the idea would certainly keep the deductions in place for four years. After four years, families doing $400,000 as well as less would certainly be able to keep the deductions as well as those doing over which amount would certainly lose the idea, he said.
“No one would certainly get hurt with which,” he said. “the idea would certainly protect the middle class in brand new York as well as at the same time let the rest of the country get the tax cuts which they deserve as well.”
— CNBC’s Jacob Pramuk contributed to This specific report.