N.Y. Lawmaker Calls No Full Repeal of State Tax Break `Ironclad'

(Bloomberg) -- Representative Chris Collins of New York said Wednesday he's spoken to key Republicans who have signaled to him the state and local tax deduction will be preserved in some form.

“It's ironclad that you will not see a full repeal, which was initially within the framework. That there will be an accommodation. And it could be any one of six different flavors or combinations of flavors,” Collins said in an interview. “I've heard that the $200,000 middle and upper-middle income are the folks we're trying to protect.”

“There are a lot of middle and upper-middle income earners, especially in places like New York, Illinois, New Jersey and California who have property taxes, mortgage interest and state income taxes of $40,000,” he said, adding that if the so-called SALT deduction is eliminated, “they're going to look at this and say: I'm going to pay more taxes.”

Earlier Wednesday, House Ways and Means Chairman Kevin Brady told CNBC he couldn't confirm that congressional leaders might back off the call for a full repeal.

“Here's what I can confirm: We are listening very carefully to lawmakers, especially from high tax states, where the governors and mayors have really put the screws to local taxpayers,” Brady said. “So we want to make sure we are lowering tax rates for every American regardless of where they live.”

To contact the reporter on this story: Sahil Kapur in Washington at skapur39@bloomberg.net.

To contact the editor responsible for this story: Alexis Leondis at aleondis@bloomberg.net.