- Haley Britzky
- Jul 12
Trump's tax-deduction plan is a GOP gamble
Carolyn Kaster / AP
A part of President Trump's tax plan has both Republicans and Democrats unsure of where to stand, according to a report from Bloomberg. The proposal to cut the state and local tax deduction has ups and down for both parties.
Republicans could benefit: Cutting the deduction could raise approximately $1.3 trillion over the next 10 years, "offsetting steep individual and corporate rate cuts Trump and Republicans are eyeing." Also, taxes would be shifted onto Democratic states like New York, New Jersey, and California.
Democrats could benefit: If Republicans lose popularity due to the proposal, which is possible considering some of the vulnerable districts went blue during the 2016 election.