House Republican leaders and the White House have reached areas of compromise on tax reform, reports WBAL.
According to unnamed sources familiar with the draft bill, it eliminates the state and local income tax deduction, but retains the deduction for local property taxes.
It also lowers the amount individuals can contribute tax-free to their 401(k)s, and fully eliminates the estate tax. From WBAL:
[B]oth the White House and House Republican leaders fully anticipate the Senate will not go along with the elimination of the estate tax – and expect this will be negotiated away in conference.