Trump's tax plan faces hurdles on Capitol Hill, even from Republicans

Republicans on Wednesday applauded President Trump for producing a tax blueprint that could turbocharge the economy even as they conceded flaws that might stall the plan in Congress.

Proponents of conservative reform were gushing over Trump's proposals to cut the corporate tax rate to 15 percent — a 20 percent reduction — and simplify the code for individuals and married couples. The burdensome "Alternative Minimum Tax" would go. So would all deductions except mortgage interest and charitable giving.

The plan is expected to hit turbulence on Capitol Hill as projections that it could explode the federal deficit emerge and opposition to eliminating popular tax breaks mobilizes. Republicans could be acutely sensitive to the pressure, and face procedural hurdles, given that Democrats are likely to oppose the effort in lockstep.

The potential fracture lines were immediately apparent, as were the opportunities. Rep. Leonard Lance, R-N.J., lauded Trump's outline for its potential fiscal benefits but made clear he would oppose slashing the deduction for taxes paid to state and local governments.

That part of Trump's proposal would cost voters in high-tax states like New Jersey millions. Several House Republicans from blue states are in Lance's predicament and would be hard-pressed to support a plan that could amount to a tax increase on their constituents.