The Real Deal New York

SALT and a hard place: House Republicans want to make tax cuts permanent

Tax cuts are set to expire in 2025
September 11, 2018 08:31AM

House Ways and Means Chairman Kevin Brady (Credit: Getty Images)

House Republicans introduced legislation on Monday that would make the new tax cuts for individuals — set to expire at the end of 2025 — permanent.

The measure also includes the controversial $10,000 annual cap for state and local tax deductions (SALT), a provision that’s particularly unpopular in high-tax states like New York and New Jersey. The legislation is up for consideration as the November election nears, when Republicans will be at risk of losing their majority in the House.

SALT’s inclusion in the bill puts Republican lawmakers in high-tax states in a tricky spot: They must decide whether to vote in favor of raising taxes for their constituents or against tax cuts.

“It’s time to change the culture in Washington where we only do tax reform once a generation,” House Ways and Means Chairman Kevin Brady said in a statement. “This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world.”

Brady has estimated that making the new law’s individual tax cuts permanent would cost $600 billion. [Bloomberg] — Kathryn Brenzel