2017: Fitzpatrick Voted For The House GOP's 2017 Tax Reform Plan Which
Significantly Cut Taxes For The Rich And Corporations And Reduced The
Size Of The State And Local Tax Deduction. In November 2017,
Fitzpatrick voted for reconciliation legislation which significantly
altered the federal tax code. According to Congressional Quarterly, "The
bill substantially restructures the U.S. tax code to simplify the code
and reduce taxes on individuals, corporations and small businesses. For
individuals, it consolidates the current seven tax brackets down to four
and eliminates or restricts many tax credits and deductions, including
by eliminating the deduction for state and local income taxes and
limiting the deduction for property taxes to $10,000 and the interest
deduction for a home mortgage to the first $500,000 worth of a loan.
[...] On the business side, it reduces the corporate tax from 35% to
20% and establishes a 'territorial' tax system that would exempt most
income derived overseas from U.S. corporate taxation. It allows
businesses to immediately expense 100% of the cost of assets acquired
and placed into service, and for small businesses it raises the Section
179 expensing limit to $5 million for five years. It also establishes a
25% rate for a portion of pass-through business income that would
otherwise have to be paid at the ordinary individual tax level, and for
small businesses where an individual would receive less than $150,000
in pass-through income it taxes the first $75,000 of that income at a
9% rate." The vote was on passage. The House passed the bill by a vote
of 227 to 205. President Trump later signed an amended version of the
bill into law. [House Vote 637,
11/16/17; Congressional
Quarterly, 11/15/17;
Congressional Actions, H.R.
1]
Bill Eliminated The Deduction For State And Local Income Taxes And
Capped The Overall State And Local Tax Deduction At $10,000 For
Property Taxes. According to Congressional Quarterly, "State &
Local Deduction --- Eliminates deductions for state and local income
taxes and caps the deduction for state or local property taxes at
$10,000." [Congressional Quarterly,
11/15/17]
Washington Post: "Blue States Will Be Hit Hardest By GOP Tax
Plan's Limits On Deductions." According to the Washington Post,
"Blue states will be hit hardest by GOP tax plan's limits on
deductions. The GOP tax plan's changes to deductions would hit
people in blue states hard, with limits on popular tax deductions
that would have the biggest effects on people with high property
taxes and expensive homes. [...] The deduction of state and local
property taxes would be capped at $10,000, and state and local
income and sales taxes could no longer be deducted. [...] Both of
the limits introduced in the tax plan are targeted at deductions
popular in blue states. 'If you live in New York City, where you pay
high taxes and where the cost of housing is pretty high, this is a
double whammy,' said Howard Gleckman, a senior fellow at the
Urban-Brookings Tax Policy Center. [...] The deduction for state
and local property taxes is also more commonly used in blue states
--- although high-income taxpayers who pay the alternative minimum
tax are already barred from taking advantage of the property tax
deduction." [Washington Post,
11/2/17]