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New York House Democrats Demand End to SALT Deduction Cap, Threaten to Oppose Future Bills If Action Not Taken

Chris Gaetano
Published Date:
Apr 14, 2021

Seventeen New York House Democrats have decided to play hardball with their own party, saying in a letter to House Speaker Nancy Pelosi and Majority Leader Steny Hoyer that if the House does not take action to remove the $10,000 cap on state and local tax (SALT) deductions, they reserve the right to oppose any future tax legislation that does not contain such a repeal, reported the Hill. Only two New York House Democrats did not sign the letter.

The group of representatives said that it is an issue of fundamental fairness, as the deduction was essential for avoiding double taxation of the same income. They noted that before the limitation was implemented in 2017, "the SALT deduction was essential to New York and other progressive states. Through the property and income taxes our constituents pay, the State provides expansive and comprehensive benefits to our neediest residents, excellent public education, and some of the best transportation infrastructure in the country." Avoiding double taxation is especially important, they said, given that New Yorkers already pay about $40 billion more in taxes than they receive from the federal government. They also cited the pandemic as a reason for action, saying that the federal deduction will help the state recover without having to cut benefits, as it will make it easier to pay for the various public programs which help everyday New Yorkers.

And if that wasn't reason enough, the letter also had the not-so-veiled threat of becoming a thorn in the side of fellow Democrats who might want to get some sort of tax legislation passed in the future. This warning was stated at both the beginning and end of the letter.

"This issue is so critical to our state and our constituents that we will reserve the right to oppose any tax legislation that does not include a full repeal of the SALT limitation," said the New York Democrats who signed the letter.

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