Under the compromise, people will still be able to deduct up to $10,000 on the property taxes they pay locally, but they will no longer be able to deduct the other taxes they pay to state or local governments from their federal tax payments.

That reflects a compromise, as an earlier version of the Republican tax plan would have would have eliminated the ability for people to deduct their state and local tax payments from their federal tax payments. That change would have raised revenue to help Republicans offset the losses from the massive rate cuts, and some proponents of it argued that the state and local tax deduction (known as “SALT”) amounted to a federal subsidy of high-tax states.

[Are red low-tax states subsidizing blue high-tax states through the tax code?]

Republican representatives from districts whose residents pay high state and local taxes -- especially those from New York, New Jersey and Pennsylvania -- balked at that plan, and it became one of the most contentious intraparty fights in the run up to the bill’s introduction. It remains to be seen whether the compromise will win over Republicans who threatened to vote against the bill because of SALT.