Reps. Nadler and Suozzi Lead New York Delegation in Call on House Leadership to Repeal SALT Limitation in Coming Tax Legislation
Washington, D.C. —Today, Rep. Jerrold Nadler (D-NY) and Rep. Tom Suozzi (D-NY) led a letter from Members of the New York Congressional Delegation to Speaker of the House Nancy Pelosi (D-CA) and House Majority Leader Steny Hoyer (D-MD) reserving the right to oppose any future tax legislation that fails to include a full repeal of the SALT limitation.
Reps. Nadler and Suozzi were joined on the letter by Reps. Jamaal Bowman (D-NY), Mondaire Jones (D-NY), Hakeem Jeffries (D-NY), Nydia Velázquez (D-NY), Carolyn Maloney (D-NY), Grace Meng (D-NY), Gregory Meeks (D-NY), Yvette Clarke (D-NY), Paul Tonko (D-NY), Brian Higgins (D-NY), Adriano Espaillat (D-NY), Joseph Morelle (D-NY), Sean Patrick Maloney (D-NY), Ritchie Torres (D-NY), and Antonio Delgado (D-NY).
"Repealing the SALT limitation is a question of fundamental fairness. With the SALT limitation in place, New Yorkers—who already send $40 billion more in taxes to federal coffers than the state receives in return—face the manifestly unfair risk of being taxed twice on the same income," said Congressman Jerrold Nadler. "Now, as New York State reckons with the vast economic impact of COVID-19, including a workforce depletion of more than one million jobs, eliminating the SALT limitation is imperative. I and many of my colleagues from New York stand prepared to work with House Leadership to restore the SALT deduction. We are equally prepared to oppose any legislation that fails to do so."
“Our effort to restore the SALT deduction is gaining momentum. My thanks to Chairman Nadler, the Dean of the New York delegation, for his leadership and all of my NY colleagues that are fighting for New Yorkers," said Congressman Tom Suozzi. “The cap on the SALT deduction has been a body blow to New York and middle-class families throughout the country. Over the coming months we will work with House Leadership and the White House to highlight the middle-class families unfairly hurt by the SALT cap. At the end of the day, we must fix this injustice. No SALT, no deal.”The letter can be found here and below.
April 13, 2021
The Honorable Nancy Pelosi
Dear Speaker Pelosi and Leader Hoyer,
As members of the New York Congressional Delegation, we urge you to insist on full repeal of the limitation on the State and Local Tax (SALT) deduction passed by Congress in 2017 and signed into law by former President Trump. 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.
The full SALT deduction is a matter of fundamental fairness in avoiding double taxation of the same income and was a fundamental part of the income tax system since its inception in 1913.
Prior to passage of the limitation 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. The SALT deduction ensured that New York State middle-class families were not taxed twice on their income, which is critical when New Yorkers already pay about $40 billion more in federal taxes than they receive from the federal government.
Repeal of the SALT deduction limitation would be important at any time, but as New York’s residents and economy continue to recover from the impact of COVID-19, it has become imperative. New York was hit first and hit hardest by the pandemic, and as a result, it lost over 1 million jobs in 2020. Over 10 percent of the state’s workforce vanished, with New York City taking the hardest hit and losing over 500,000 jobs. Restoring the SALT deduction would ensure that the state is able to recover as quickly as possible without sacrificing the benefits on which our residents rely.
That is why Treasury Secretary Janet Yellen has indicated her willingness to work with Congress on changing the limitation and Majority Leader Chuck Schumer has introduced legislation to fully repeal the limitation. It is imperative that the House of Representatives also act quickly to repeal the limitation. We stand ready to work with you on this critical issue, and we will not hesitate to oppose any tax legislation that does not fully restore the SALT deduction.