New York – Congressman Tom Suozzi (D-NY) is sending a clear message to elected officials and constituents alike that state and local tax cuts must be reinstated in support of a $3.5 trillion reconciliation package.
“New York State needs to be more attractive and competitive, but in the short term we have to hold SALT back,” Suozzi said.
A cap on the SALT deduction was put in place in 2017 as part of the Republican tax cut law – only allowing homeowners to deduct $10k from state and local taxes, leading to many in high tax states like New York. Middle class families were hurt.
Suozzi, a Democrat whose call for New York to restore SALT existence, has recruited more than 30 bipartisan members of Congress who have advocated for the cap’s repeal.
“People are moving away from their hometowns. It has a real impact on real people,” he said.
But across the country, people from other states see that only the rich benefit from the SALT cut. However, advocates argue that it would be appropriate to reinstate it.
There are reports that the SALT deduction could be incorporated into law but only until 2025. Suozzi is pushing for a complete repeal.