Taxpayers Might Face Choice of Property Tax, Home Deductions

WASHINGTON (AP) — Homeowners would be forced to choose between two popular tax deductions — one for local property taxes, the other for mortgage interest — under a potential compromise that House Republicans are considering as they craft the evolving tax revamp. The nearly $6 trillion tax overhaul plan being pushed by President Donald Trump and Republican leaders in Congress promises to retain the deduction of mortgage interest from federal income taxes — a cherished tax break used by about 30 million Americans that supporters say is a catalyst to home ownership. Republicans in high-tax states such as New York, New Jersey and California are balking at the proposal from Trump and GOP leaders to eliminate the federal deduction for state and local taxes, fearing the financial hit on their constituents.