President Trump with Rep. Tom Reed (left) and Health and Human Services Secretary Tom Price. AP
Anil Melwani, a Manhattan CPA from 212 Tax Services, said it seems fiscally unlikely for New Yorkers to get a credit for all of their state and local taxes since that could mean huge refunds.
But getting a percentage of their taxes turned into a credit could be a fair compromise.
“I think they realized that New Yorkers, Californians and people in other high-tax states would be super hurt by eliminating the deduction and maybe they want to offer a little bit of an offset,” Melwani told The Post.
“You can’t deduct it, but you could take a percentage of it as a credit. It sounds to me like a political move to not lose votes or to piss too many people off in those high-paying states.”
Are the Whitehouse and Congress really working together on tax law changes? Recent news reports would seem to cast doubt on that.
http://nypost.com/2017/08/24/white-house-shows-signs-of-budging-on-tax-plan/
New NY 23rd 
The White House and Congress have been working on tax cuts for the wealthy for a while. The sticking points are how are they going to stick it to the rest of us:
The Big Six Are Making Progress on Tax Overhaul
In July, Donald Trump released a six-paragraph tax plan that basically said he wanted to cut taxes. A one-page plan like that cannot be submitted to the House and Senate for a vote. Behind the scenes, however, a group of six key figures is working on actual legislation. The six are: Director of the National Economic Council Gary Cohn, Treasury Secretary Steve Mnuchin, Mitch McConnell, Speaker Paul Ryan (R-WI), Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways & Means Chairman Kevin Brady (R-TX). All of these are heavyweights who know what they are doing. Nevertheless, tax legislation is always tough because it affects all individuals and all companies.
One decision that has already been made is a one-time requirement that U.S. companies bring back overseas earnings and pay a low tax rate on them. Most large businesses strongly support this. The group has also decided to reduce the corporate tax rate from 35% to the range of 22% to 25%, depending on how much money can be raised from other sources.
There is no shortage of ideas about how to raise revenue to pay for the corporate tax cut. One idea is to tax the money that workers put in their 401(k) retirement accounts up front. This proposal will create a firestorm of resistance, not only from individuals, but also from the financial services industry, especially the big banks. Another idea is to cap the home mortgage deduction. Expect the real estate industry to go bonkers over this one. Also on the table is the elimination of deductions for state and local taxes. Since taxes are higher in blue states than in red states, that sounds like a good idea politically—unless you happen to represent a high-tax blue state in the Senate, as Sen. Pat Toomey (R-PA) or Sen. Ron Johnson (R-WI) do. And what about the 14 Republican representatives from California or the 9 Republican representatives from New York? How are they going to explain a vote to eliminate those deductions to their constituents? In short, making a plan is the easy part. Getting it through Congress is something else.
http://www.electoral-vote.com/evp2017/Senate/Maps/Aug23.html#item-7
LikeLike
Who really cares and what does it matter that Tom Reed is in the same photo with President Bush ?!?!
I know that NY District 22 Congressional member Claudia Tenney has been working diligently with other Congressional members on tax cuts that would benefit the poor and lower middle class.
District 23 Progressives are not doing their fellow smaller government fiscally responsible JFK Democrats as justice by going for teh extremes. Bring forth a fiscally responsible, smaller government, lower taxes Democrat candidate and you may have a chance of defeating Congressman Reed in November 2018
LikeLike
If the photo of Reed with Trump is interesting, it is only because they are rare. This is the first I have seen that didn’t appear to be faked.
Has Claudia Tenney documented her views? If she backs tax cuts that would benefit the poor and middle class, that would seem to put her at odds with the GOP leadership.
LikeLike
Arthur, I understand they want to increase the standard deduction so many taxpayers will no longer need itemize. But will high income taxpayers still have many potential deductions available?
LikeLike
It does not matter because high income people will have a massive cut in their tax rate bracket. Twenty per cent for the rich versus three percent for the middle class. However, you can put me in a lower tax bracket, but if you take away my itemized deductions, I will not be saving anything.
LikeLiked by 1 person
Aretha, it may be worse than you think. According to the NY Post article:
Under the current White House proposal, the standard deduction would roughly double to $24,000 for a married couple, while almost all itemized deductions would be eliminated, except for charitable donations and mortgage interest.
As I read this high income taxpayers would not only get a lower rate, but also could still reduce their taxes by itemizing deductions.
LikeLike