The chairman of the House of Representatives' tax-writing committee said on Sunday he would not accept the total elimination of state and local tax deductions in the final tax reform bill.
President Donald Trump tweeted about the Republican tax plan on Monday.
The House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal eliminates the entire deduction.
Taxpayers in liberal havens such as NY and California claim the majority of the total state and local tax deductions taken each year, while more conservative states such as Texas generally have fewer regional taxes, including state income taxes.
Both plans also call for deep tax cuts for high-earners and businesses and would reshape how the United States taxes multinational corporations.
White House economic adviser Gary Cohn said both plans adhere to Trump's two main objectives in overhauling the tax code: a tax cut for middle-income Americans and a deep reduction in the corporate tax rate to make USA businesses competitive.
A separate group, Americans Against Double Taxation, launched a nationwide radio ad campaign Friday targeting several Republicans in California, calling the tax bill "a scam that double-taxes the middle class and explodes the deficit".
Republican tax plans in the House and Senate would each cost about $1.5 trillion but lawmakers will have to iron out differences including whether to eliminate the deduction for state and local taxes, delay implementation of a cut in the corporate tax rate and do away with the estate tax on inheritances.
Trump and some Republicans favor including a repeal of the mandate in tax overhaul legislation. "We're going to simplify taxes somewhat", said Toomey.
"They're not hedge fund people", King said on "Sunday Morning Futures". The legislation, promoted as a boon to the middle class, would steeply cut corporate taxes, double the standard deduction, and limit or repeal completely the federal deduction for state and local property and income taxes. The House wants to reduce the number of brackets, but leave the 39.6 percent top rate alone.
The language echoed comments from House Speaker Paul Ryan, R-Wis., who last week walked back his statement that "everybody gets a tax cut".