A group of Republicans from states with high local taxes are threatening to block passage of a key budget resolution that is needed to pass tax reform.
Reps. Peter King, R-N.Y., Tom MacArthur, R-N.J., and others from high-tax states say they will not vote for the Senate budget resolution this week because the GOP tax reform outline would eliminate the state and local tax deduction that brings huge savings to their constituents at tax filing time.
The representatives believe more than 21 GOP lawmakers are on their side and could be large enough to stop passage of the budget.
“I don’t see any evidence of a resolution yet,” King told the Washington Examiner on Tuesday.
MacArthur and a group of other Republicans plan to meet with GOP leadership Tuesday to discuss the state and local tax deduction. MacArthur also plans to meet in the Capitol with Vice President Mike Pence.
The Majority Whip, Rep. Steve Scalise, R-La., told the Washington Examiner in an interview that Ways and Means Committee Chairman Kevin Brady, R-Texas, “has been working with all of those members to try to come to some kind of agreement,” on the so-called SALT deduction.
He added, “We are working to get there. We are going to get the budget passed.”
But the opposition could thwart the GOP’s plan to accelerate tax reform and perhaps get a bill to President Trump’s desk by Thanksgiving or year’s end.
Trump has been phoning House lawmakers ahead of the budget vote, urging them to vote for the Senate-passed measure. He is meeting with GOP senators in the Capitol on Tuesday.
The budget resolution is critical because it will be linked to the tax reform legislation and will allow it to pass with just 51 votes in the Senate rather than the usual 60, preventing a filibuster by the Democrats.
Without the budget resolution, tax reform would likely be impossible.
MacArthur said he believes the matter will be resolved this week.
“Leadership knows there are more than 21 of us that have an issue,” MacArthur said. “It’s all about vote counting.”
