New York Daily News
Get the SALT out
The April 1 letter that seven governors sent to President Biden was no April’s Fools joke. The changes to the tax code pushed through by the Republican Congress with zero Democratic votes in 2017 limiting the long-sacrosanct federal deduction on state and local taxes (SALT) was unfair and politically motivated. It must end.
The $10,000 cap has financially punished millions of Americans, with New Yorkers and Californians each suffering $12 billion in added bills to the IRS every year. Folks in Illinois, New Jersey, Connecticut, Oregon and Hawaii are also all getting hit hard annually, prompting those seven governors to write to Biden asking him and the Democratic Congress to unravel the reform, which serves as a tax on taxes. That these states and others all contribute more to the feds than they get back only makes matters worse.
It hasn’t gone unnoticed that House Speaker Nancy Pelosi is from California and Senate Majority Leader Chuck Schumer is a New Yorker. They owe their home states no less than the three California Republican congressmen and five Republican New
Yorkers (a majority of the state’s Republican delegation) who broke with President Trump and their party and voted no in 2017.
Waiting until the SALT cap sunsets in 2025 is unacceptable; that’ll be billions of additional dollars lost by states already walloped by the pandemic. The issue is rightly being forced in the House by Long Island’s Tom Suozzi, who says, “No SALT, No Deal,” as he threatens to withhold his support for taxes for Biden’s $2.3 trillion infrastructure plan unless the SALT limit is lifted.
One vote doesn’t matter, but when Jersey’s Josh Gottheimer and Bill Pascrell joined Suozzi, there went Pelosi’s narrow margin. Another five members have since signed on, making Suozzi’s demand the infrastructure funding kingmaker.
Having taxpayers and homeowners suffer what amounts to double taxation may have been okay at a time when Trump and anti-blue-state Republicans ruled the roost, but it should be an anathema to Biden, Pelosi and Schumer. Repeal the SALT cap now.