In addition, Republicans are proposing "revenue raisers," such as ending the deduction for payments of state and local tax, known as SALT. Doing that would raise about $1.3 trillion over a decade, said the Tax Policy Center, a Washington think tank.
Almost 30 percent of taxpayers currently deduct state and local taxes. In New Jersey, for example, 41 percent of tax filers, meaning individuals or married couples, claimed the deduction, which averaged $17,850, according to a Government Finance Officers Association (GFOA) analysis of Internal Revenue Service data.
Though the deduction disproportionately benefits people in high-tax states and localities, individuals in all states claim it. In Georgia, for example, 33 percent of tax filers claim an average deduction of $9,158, the GFOA report said.
The high-tax states, however, tend to be Democratic-leaning, such as California and New York, and of the seven states with no income tax of their own, six are Republican-leaning.
Republican Representative Chris Collins of New York, a Trump ally, told reporters earlier this week that lawmakers from high-tax states, such as his own, were discussing "ways to level the playing field," including capping the amount of the deduction or putting other limits on it.
"There are many districts with Republican members where state and local deduction is used by a large portion of the tax payers. So it's not surprising that it's not strictly a blue state/red state thing," said Frank Sammartino, a senior fellow at the Tax Policy Center.
Senate Democratic leader Chuck Schumer called the state and local tax deduction the "Achilles' heel" of tax reform and said Democrats would oppose any move to take it away. He dismissed compromise plans as unfeasible.
Brady said on Thursday that at this point there has been no change to the framework, but tax writers are "listening very carefully" to lawmakers' concerns.
"It's got to be frustrating when you're in a state where local and state officials really put the screws to taxpayers. We are determined to provide tax relief to every American regardless of where they live," Brady told reporters.
This article was provided by Reuters.