A group of seven Democratic governors joins calls within the party to urge President Biden to repeal the Trump-era limit in State and local tax deductions (SALT).
In a letter sent to the White House on Friday, governors, including New York Andrew CuomoAndrew CuomoNYPD’s memo tells officers not to stop New Yorkers from smoking marijuana in public. Will vaccine passports be the biggest campaign theme of 2022? Negotiation of Cuomo’s book deal overlapped with concealment of nursing home death toll: MORE report, Of California Gavin newsomGavin NewsomSuspect Knew Victims In California Shooting: Police Steyer Say ‘No Plans’ To Run For Public Office Again Trump Jr., Kimberly Guilfoyle Buy House M Near Mar-a-Lago MORE and Phil Murphy of New Jersey, wrote that while the administration “has already taken incredible steps to ease the burden of more than a year of uncertainty caused by a global pandemic,” more must be done to fuel the economic recovery.
“We must go further and undo the limit imposed on state and local tax deductions (SALT) by the Trump Administration through the Tax Cuts and Jobs Act in 2017,” argued the governors.
The rule, which was put in place by the former President TrumpDonald Trump White House Says Bills Are Bipartisan Even If The Republican Party Doesn’t Vote For Them To help offset some of your tax cuts, limit SALT deductions to $ 10,000. Lawmakers in high-tax states and Democratic leanings have long screwed up the cap and lobbied to reverse it.
The governors argued on Friday: “For the first time since Abraham Lincoln created the federal income tax, the limit on SALT deductions established a double taxation system, where 11 million Americans were forced to pay taxes on the amount they they paid state, local, and property taxes, to the tune of $ 670 billion over a decade. “
“Like many of President Trump’s efforts, limiting SALT deductions was based on policy, not logic or good governance,” they stated. “This assault was disproportionately directed at Democratic-controlled states, raising taxes on working families.”
“This was unacceptable then, and it is simply unsustainable given the dire economic conditions caused by the pandemic,” the governors added.
Democrats said that while “it was encouraging to hear that Secretary of the Treasury Yellen agreed to work with Congress to ease the $ 10,000 limit on SALT recently,” the Biden administration and members of Congress should “continue these efforts to alleviate this immense financial burden on our residents. ” and completely remove the SALT limit. ”
The joint letter was also signed by the governments. Ned Lamont (Connecticut), JB Pritzker (Illinois), Kate brownKate Brown Oregon Governor Issues Executive Order to Reopen Schools Oregon Governor Orders Schools Reopen by April 19 Colorado Governor Jared Polis Engaged with Partner Marlon Reis MORE (Mineral) and David Ige (Hawaii).
A growing number of Democrats are aiming to pressure Biden to waive the cap on SALT deductions, including members of the House who have threatened to withhold support for Biden’s $ 3 trillion infrastructure proposal if the cap is not removed.
On Tuesday, Democratic Representatives Thomas Suozzi (NY), Bill pascrellWilliam (Bill) James Pascrell Daily Poster Founder Discusses Conservative Democrats’ Strategies to Influence Biden Pelosi Hopeful Democrats May Reform SAL Tax on Biden’s Infrastructure Bill Biden Triggers Capitol’s Fight on Spending and taxes PLUS (NJ) and Josh gottheimerJoshua (Josh) GottheimerDaily Poster Founder Discusses Conservative Democrats’ Strategies to Influence Biden Pelosi Democrats Hoping They Can Reform SAL Tax on Biden’s Infrastructure Bill Biden Triggers Capitol’s Fight on Spending and taxes PLUS (NJ) issued a joint statement promising to oppose any effort to change the tax code unless the SALT deduction is reinstated.
Speaker of the Chamber Nancy pelosiNancy PelosiPelosi and Schumer speak with the family of the officer killed in the attack on the Capitol Republicans say quietly that Gaetz’s days in Congress are numbered Officer killed in an attack with a vehicle on the Capitol identified MORE (D-Calif.) Thursday expressed optimism on including tax code reforms within Biden’s infrastructure package, although he did not draw a red line.
Pelosi said in a press call: “Hopefully we can put it in the bill. I never give up hope of something like that. [that] It means a lot to the American people. “