Sen. Ted Cruz (R-TX) broke against the House GOP’s tax bill Tuesday, criticizing the proposal for raising taxes on some Americans. But his idea to fix the bill could throw a major wrench into the tax reform debate.

Cruz said at a press conference Tuesday that the current House bill would disadvantage people who live in blue states, such as New York and California. The House’s tax bill, which is being marked up in committee, repeals the state and local income tax deduction, which lowers federal income taxes for many people in high-tax states.

The Joint Committee on Taxation, which analyzed the bill, found about a quarter of households would face a tax increase in 2025 under the House bill.

“There are some taxpayers who are losing exemptions, particularly in some high-tax states like New York or California that could conceivably be paying higher taxes,” Cruz said. “I think that is a mistake. I think tax reform needs to cut taxes for everybody.”

While it’s a politically popular position to take, Cruz’s solution to lower rates for everyone is unlikely to have the same appeal: He wants to repeal Obamacare’s individual mandate in the tax bill.

Senate rules limit how much the tax bill can increase the deficit, and so Republicans have been struggling to find ways to offset massive tax cuts for corporations and individuals.

Repealing the individual mandate, the Obamacare provision that penalizes people who go without health insurance, is estimated to bring in an additional $416 billion in revenue for the federal government — which, Cruz argues, Republicans could then use to protect tax deductions or lower rates even further.

Cruz, who has partnered with Sens. Rand Paul (R-KY) and Tom Cotton (R-AR) in this drive, claims this proposal should be an easy sell for his Republican colleagues. President Donald Trump Read More Here