Yesterday the House Finance Committee approved the House’s version of tax reform, the legislation may move to a vote of the full House as early as tomorrow.
Of interest are three amendments that were proposed during the committee meeting, two of which were rejected and one that was approved. The approved amendment was one to remove a $25,000 cap on itemized deductions for mortgage interest, charitable deductions and property taxes paid. Removing the cap and allowing for the larger itemized deductions is estimated to reduce tax revenue by roughly $500 million – presumably over the next five years.
The two amendments that were defeated include one that would keep the top marginal personal income tax rate of 7.75% to kick in on income above $1 million; along with an amendment to end the state’s controversial film tax credit this year rather than the already-scheduled sunset date of 2014.
Overall, the House’s tax plan is projected to reduce the state’s tax burden by about $1.5 billion over the next five years compared to what the current tax code is projected to collect over that time.