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Reps. Nadler and Suozzi Lead Letter to Speaker Johnson and Chairman Smith Urging Repeal of the State and Local Tax Deduction Cap 

Washington, February 8, 2025

Today, Rep. Jerrold Nadler (NY-12) and Rep. Thomas Suozzi (NY-03) led members of the New York delegation in a letter to Speaker Johnson and Ways and Means Committee Chairman Jason Smith urging a full repeal of the State and Local Tax (SALT) Deduction cap.   

 

“We strongly urge you to include a full repeal of the State and Local Tax (SALT) deduction cap in any tax-related legislation brought to the House floor,” wrote the Members to House Speaker Mike Johnson and Ways and Means Committee Chairman Jason Smith.  

 

“The cap has unfairly burdened hardworking, middle-class New Yorkers by imposing costly double taxation without offering meaningful relief,” the Members continued. “A full repeal of the SALT deduction cap has already been proposed in the SALT Deductibility Act, which was reintroduced last week with strong bipartisan support and would secure relief for middle-class families who have been harmed by the cap.” 

 

“The cap weakens municipalities' ability to sustain these critical services, jeopardizing public safety and the well-being of our communities. The SALT deduction prevents residents from being taxed twice on the same income while ensuring state and local officials have the resources to fund vital public services,” the Members concluded. 

 

The SALT deduction cap was enacted as part of the Tax Cuts and Jobs Act of 2017, limiting how much hardworking New York families could receive in much-needed tax relief.  According to the New York State Department of Taxation and Finance, the SALT cap costs New Yorkers up to $15 billion annually in gross deductions, while New York as a whole contributes more in federal taxes than it receives back in federal spending.  

 

This letter follows the introduction of the SALT Deductibility Act, introduced last month by a bipartisan group of lawmakers from states disproportionately impacted by the SALT deduction cap. As negotiations continue over the expiring provisions of the Tax Cuts and Jobs Act—including the SALT deduction cap—it is widely expected that the cap will be reconsidered. 

 

The SALT deduction cap is also harmful to local municipalities and the critical services they provide, such as law enforcement, firefighters, and emergency responders, which are all reliant on property and income tax revenues.  

 

The letter was also signed by Representatives Yvette Clarke (NY-09), Adriano Espaillat (NY-13), Laura Gillen (NY-04), Daniel Goldman (NY-10), Timothy Kennedy (NY-26), George Latimer (NY-17), John Mannion (NY-22), Gregory Meeks (NY-05), Grace Meng (NY-06), Joseph Morelle (NY-25), Josh Riley (NY-19), Patrick Ryan (NY-18), Ritchie Torres (NY-15), and Nydia Velázquez (NY-07).  

 

The full letter can be read HERE.

 

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FOR IMMEDIATE RELEASE: February 7, 2025

CONTACT: Matt Jansen (Nadler) 202-494-1278

 

WASHINGTON, DC - Today, Rep. Jerrold Nadler (NY-12) and Rep. Thomas Suozzi (NY-03) led members of the New York delegation in a letter to Speaker Johnson and Ways and Means Committee Chairman Jason Smith urging a full repeal of the State and Local Tax (SALT) Deduction cap.   

 

“We strongly urge you to include a full repeal of the State and Local Tax (SALT) deduction cap in any tax-related legislation brought to the House floor,” wrote the Members to House Speaker Mike Johnson and Ways and Means Committee Chairman Jason Smith.  

 

“The cap has unfairly burdened hardworking, middle-class New Yorkers by imposing costly double taxation without offering meaningful relief,” the Members continued. “A full repeal of the SALT deduction cap has already been proposed in the SALT Deductibility Act, which was reintroduced last week with strong bipartisan support and would secure relief for middle-class families who have been harmed by the cap.” 

 

“The cap weakens municipalities' ability to sustain these critical services, jeopardizing public safety and the well-being of our communities. The SALT deduction prevents residents from being taxed twice on the same income while ensuring state and local officials have the resources to fund vital public services,” the Members concluded. 

 

The SALT deduction cap was enacted as part of the Tax Cuts and Jobs Act of 2017, limiting how much hardworking New York families could receive in much-needed tax relief.  According to the New York State Department of Taxation and Finance, the SALT cap costs New Yorkers up to $15 billion annually in gross deductions, while New York as a whole contributes more in federal taxes than it receives back in federal spending.  

 

This letter follows the introduction of the SALT Deductibility Act, introduced last month by a bipartisan group of lawmakers from states disproportionately impacted by the SALT deduction cap. As negotiations continue over the expiring provisions of the Tax Cuts and Jobs Act—including the SALT deduction cap—it is widely expected that the cap will be reconsidered. 

 

The SALT deduction cap is also harmful to local municipalities and the critical services they provide, such as law enforcement, firefighters, and emergency responders, which are all reliant on property and income tax revenues.  

 

The letter was also signed by Representatives Yvette Clarke (NY-09), Adriano Espaillat (NY-13), Laura Gillen (NY-04), Daniel Goldman (NY-10), Timothy Kennedy (NY-26), George Latimer (NY-17), John Mannion (NY-22), Gregory Meeks (NY-05), Grace Meng (NY-06), Joseph Morelle (NY-25), Josh Riley (NY-19), Patrick Ryan (NY-18), Ritchie Torres (NY-15), and Nydia Velázquez (NY-07).  

 

 The full letter can be read HERE.

 

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