(CNSNews.com) - Calling it a "historic day," House Speaker Paul Ryan said the Republican tax reform plan is "going to make such a positive difference in the lives of everyday working Americans from all walks of life."
"With this tax reform, families at every income level get a tax cut, but especially middle-income families," Ryan said.
(Upper-middle-income families from high-tax states, living in areas with high home values, will pay more in taxes because their deductions will be limited and they will be forced to take the standard deduction.)
Both the House and Senate are expected to pass the plan on Tuesday, despite "mistruths" being spread on TV, Ryan said:
"Look, when you have a slingfest, a mudfest, on TV, when pundits are slamming each other about this tax bill before it passes, that's what's going to happen. But when we get this done, when people see their withholding improving, when they see the jobs occurring, when they see bigger paychecks, a fairer tax system, a simpler tax code -- that's what's going to produce the results. Results are going to make this popular."
A few House Republicans, including Reps. John Faso (N.Y.) and Dana Rohrabacher (Calif.), plan to vote against the bill because it will raise taxes on people living in areas with high home values and high state and local taxes:
In a statement posted on his website Monday, Rep. Faso explained his "no" vote:
From the beginning, I wanted to support a tax reform plan that would increase economic growth, increase worker paychecks, incentivize small business investment and ensure New York families are better off. Unfortunately, this plan does not meet all of those criteria, and I will vote against the bill when it comes up for a vote.
I remain concerned that as a result of the state’s high income and property taxes, the partial elimination of the SALT [State and Local Tax] deduction effective January 1, 2018 impacts New York families more severely than those in other states. These families have already made financial decisions based on this deduction, and to have it removed without any chance to prepare, is unfair.
It's important to recognize that this bill does make positive changes in our tax code that will help American businesses of all sizes and their workers compete in the global economy. In addition, there will be many families and small businesses in the 19th district that will receive a tax cut under this legislation. However, the overall impact of changes to the SALT deduction will accelerate the trend of hardworking individuals and businesses already leaving our state – further eroding New York’s tax base.