According to the NY Times, “The budget measure cleared Congress over the loud protests of House members from high-tax states like New York, New Jersey and California, who worry that the blueprint will doom the current deduction for state and local taxes — a deduction of great importance to taxpayers in their states.”
“This is a big issue, and it has to be resolved,” Representative Tom MacArthur, Republican of New Jersey, said on the eve of the vote. “Tax reform is good for the country; it’s just not good for the country when it’s on the back of six states. That’s the problem.”
Final approval of the budget measure clears the way for House leaders to unveil their tax plan next Wednesday, with a formal bill drafting during the week of Nov. 6. The high-stakes legislative sprint could affect households in every state and businesses in every industry, with enormous political consequences for President Trump and Republicans in Congress.
A budget resolution is nonbinding and not signed by the president but it is a necessary step that Republicans must take if they hope to enact tax reform legislation with a simple majority.
The Senate budget resolution included an amendment to allow Congressional leaders to avoid the time-consuming process of reconciling the House and Senate versions.