Trump might change the GOP tax plan because his rich friends asked him to
National Economic Council Director Gary Cohn suggested Friday that the White House wanted the final version of the Republican tax bill to include deductions for state income taxes — just one day after The Washington Post reported that wealthy friends of President Trump had complained to him that neither of the bills passed by Congress included those deductions.
"No one really wants tax increases here," Cohn said during an interview with Bloomberg. The House measure, which passed last month, eliminates the deduction for state and local income taxes, as does the Senate measure, which passed last week.
Instead, under the proposed bills, Americans are allowed deductions of up to $10,000 for local property taxes. The average American pays a little more than $2,000 in local property taxes, WalletHub reports, but property and income taxes vary from state to state and are generally higher in northeastern states than in other parts of the country. In New York County, for example, the average resident claims $24,898 in local and state tax deductions.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Bloomberg notes that Senate Majority Leader Mitch McConnell (R-Ky.) and House Republican leadership have said that they would consider including a deduction of state income taxes in the final tax bill, but only up to the same $10,000 cap as local property taxes.
While Cohn suggested to Bloomberg that the White House would accept that compromise, such a deal might not be enough for Trump's rich friends. Kathy Wylde, who runs a major business advocacy group called the Partnership for New York City, told The Washington Post that she has tried to rally business leaders and executives to talk the White House into action on the income deductions. "They're killing the goose that lays the golden egg," Wylde said.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kelly O'Meara Morales is a staff writer at The Week. He graduated from Sarah Lawrence College and studied Middle Eastern history and nonfiction writing amongst other esoteric subjects. When not compulsively checking Twitter, he writes and records music, subsists on tacos, and watches basketball.
-
Foreigners in Spain facing a 100% tax on homes as the country battles a housing crisis
Under the Radar The goal is to provide 'more housing, better regulation and greater aid,' said Spain's prime minister
By Justin Klawans, The Week US Published
-
Crossword: January 22, 2025
The Week's daily crossword
By The Week Staff Published
-
Codeword: January 22, 2025
The Week's daily codeword puzzle
By The Week Staff Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published