Cohn Says Ending State, Local Tax Break Up for Negotiation
- Republican House members in high-tax states want to keep break
- President draws firm line on business rate cuts, adviser says
Cohn Says State, Local Tax Breaks 'Not a Red Line'
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President Donald Trump is open to negotiating on the deduction individuals take for state and local taxes, his top economic adviser Gary Cohn said Friday.
While the tax framework released Wednesday would eliminate that deduction, the provision isn’t a red line, according to Cohn, the director of the National Economic Council. The deduction is used extensively in high-tax states like New York, New Jersey and California. It’s frequently cited by White House advisers as an example of carve-outs they want to end for the wealthy. Eliminating the deduction would raise an estimated $1.3 trillion that could be used to offset the plan’s proposed tax cuts.