House Democrats Join with Republicans to Demand SALT Deduction Cap Lift

By:
Chris Gaetano
Published Date:
Jun 30, 2021
A group of House Democrats joined with Republicans to press their case for lifting or removing the $10,000 cap on state and local tax (SALT) deductions, which was imposed to pay for the Tax Cuts and Jobs Act, according to Bloomberg.

Previously, New York House Democrats in particular had threatened to withhold their support of any future tax legislation that does not contain such a relief measure; with Congress currently debating the finer points of the White House's infrastructure proposal, however, it would appear that even more lawmakers have joined in the call. Last night 18 members of the House, including Democrats Tom Suozzi of New York and Josh Gottheimer of New Jersey as well as California Republicans Michelle Steel and Young Kim, said it was vital for middle class taxpayers to be able to write off more than $10,000 in state and local taxes. Rep. Suozzi went so far as to say that restoring the tax break would be key in the progressive agenda, such as expanding child health insurance, promoting organized labor and protecting the environment, despite programs doing so tending to require tax money which the government would not get.

The matter of the SALT cap has been a contentious issue in Democratic circles, where the party's left wing sees little point in restoring a deduction that primarily benefits the wealthy. While Sen. Bernie Sanders (I-Vt.), the self-described Democratic Socialist who caucuses with the Democrats, was initially against the whole idea, he recently came around a little, saying that he now supports a partial lifting of the cap, but insisted that the wealthy not benefit at all from such a maneuver.

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