The Senate Committee on Finance argues that its proposal of changes to the bill "prevents the largest tax hike in history."

State and local tax deductions on federal income tax forms would remain capped at $10,000 under a plan released Monday by the Republican-led Senate Finance Committee-a limit with significant implications for California taxpayers.

The legislation keeps some House provisions, like new Medicaid rules, while making significant changes in other areas, including Medicare and the state and local tax deduction.