Well-intentioned tax reform needs key tweaks

Tax reform is a real chance to provide working families and small businesses meaningful tax relief. Members of Congress have referred to the "minor differences" in the both the Senate and House tax reform bills. However, I wish to remind legislators that those small difference can have great impacts on the middle class.

The biggest difference is for those who live in high-tax states. Unfortunately, homeowners will no longer be able to deduct state and local income taxes, which hits those of us in Illinois hard. The only saving grace is that both versions of tax reform allow homeowners to deduct up to $10,000 in property taxes. Congress must resist pressure to lower or remove that deduction.

Another of the so-called "minor differences" is that the Senate tax bill keeps the mortgage interest deduction cap at $1 million while the House version caps it at $500,000. In major metro areas, such as Chicagoland, a modest three-bedroom house costs well above the House cap.

This change would not only discourage potential first-time homeowners from achieving a piece of the American dream, but it will also harm the schools, small businesses and local governments who will see reduced tax revenues.

One other cause for concern is the elimination of the home equity loan deduction.

Many Illinoisans rely on this deduction as they seek to improve or repair their homes. This is especially important as our aging population requires access to financing to make their existing homes safe for their retirement years.

The effort by Congress to provide tax relief for Americans is a well-intentioned one that could help many of us in the middle class. As our leaders in Congress determine the structure of our revamped tax code, they must ensure they are operating in the best interests of homeowners throughout Illinois.

Aaron Del Mar, Palatine Township Republican Committeeman

Palatine