Much of this sharp decline can be explained by the fact that almost 1.8 million New Jersey households would no longer be able to write-off their state income or sales taxes on their federal tax forms, as these deductions would be repealed entirely under the bill.
The bills represent the first major reshaping of the USA tax code in three decades, and the effort is the top priority for President Donald Trump and Republicans who've failed to deliver any major legislation this year despite controlling the House, Senate and the White House. Brady's changes presumably are being made to meet the $1.5 trillion maximum that the bill is allowed to add to the $20 trillion deficit. Senate Republicans have not released their proposal yet.
All the details from the Senate's version of the bill are not out yet, but a senator from South Dakota says that it does preserve the tax credit for electric cars.
The plan would reduce tax rates for low and middle-income Americans and doubles the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
Republican leaders' goal is for Congress to send legislation melding both House and Senate versions to Trump by Christmas, in hopes of protecting their congressional majorities in next year's elections. The House version would retain the deduction only for property taxes and cap that at $10,000, drawing opposition from GOP lawmakers from states with high local taxes like NY and New Jersey.
South Korea announces sanctions against Pyongyang
North Korea's latest missile test in September flew over northern Japan before splashing into the Pacific Ocean. Trump repeated that the era of strategic patience, in attempting to deal with Pyongyang, is over.
"The South Dakota Republican said the measure also preserves existing clean energy tax incentives such as for electricity production from wind. It preserves a tax credit for electric cars as well".
The real estate industry warns that would hurt the housing market, especially in more affluent areas.
The Senate would boost the child tax credit to $1,650 and raise the income threshold for the measure.
The Senate bill would reduce the number of wealthy people who pay the estate tax by doubling the current threshold for the tax, which now kicks in for individuals on estates worth over $5.6 million. In the House, Ways and Means Committee Chair Kevin Brady was making changes before the panel votes Thursday to deliver it to the full House. Several GOP lawmakers in the House have already come out against their colleagues' plan. It would also lower the tax rate on "hard-earned business income of Main street job creators" to no more than 25 percent, the talking points say. The Joint Committee on Taxation has projected that an earlier version of the House bill will lead to $1.7 trillion more in budget deficits over 10 years.
Senate Republicans are using special budget reconciliation rules that prevent a Democratic filibuster.