By Marcy Gordon and Ken Thomas | Associated Press
WASHINGTON (AP) — The top House Republican on Thursday blasted high-tax states that deliver billions to the federal government as he faced a backlash from rank-and-file GOP lawmakers over a sweeping tax-cut proposal.
But beyond the tough rhetoric from Speaker Paul Ryan, disgruntled lawmakers met privately with Republican leaders and reached for possible compromises to break the impasse. The GOP lawmakers from high-tax states oppose the plan’s proposal to repeal the popular federal deduction for state and local taxes. It’s used in large numbers by residents of their states.
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With Republicans splintered, the future of the $6 trillion tax overhaul plan is threatened by the GOP defections. The success of the package is a political imperative for Republicans who have pinned their hopes on a big legislative achievement to help them retain control of Congress in next year’s elections. It’s also President Donald Trump’s highest legislative priority to fulfill his promise of boosting economic growth.
Ryan went on the offensive against high-tax states like California, New York and New Jersey even though the GOP lawmakers from those states need to be brought on board to support the tax overhaul plan.
But Ryan contended the rest of the country is “propping up profligate, big-government states” that levy high taxes on their residents and spend recklessly.
“States that got their act together are paying for states that didn’t,” the Wisconsin lawmaker said at an appearance at the conservative Heritage Foundation.
In fact, California, New York and New Jersey send many billions more in taxes to Washington than they get back in federal spending, new data show. Divided by total state residents, New York gets back 81 cents for every $1 …read more
Source:: East Bay – Business