SALT deduction repeal is causing Dems blood pressure to rise

Democratic lawmakers in Washington are telling President Biden they will not vote for his $4 trillion spending bills unless it includes a repeal on the limit of the SALT (State And Local Taxes) deductions.

Democrats from high-tax states — New York, New Jersey and California — have demanded that one of Biden’s proposals – the $2.3 trillion American Jobs Plan and the $1.9 trillion American Families Plan – include a full repeal of the $10,000 SALT deduction cap.

“We love the president’s plan to do things big and bold and build back better and make the country better than it’s ever been before,” Rep. Tom Suozzi, D-N.Y., said during an interview on MSNBC. “But no SALT, no deal.”

Rep. Josh Gottheimer, D-N.J joined in a 30-member coalition of Democrats and Republicans who will pull their support for the spending bills if the SALT deduction limit is not included.

“Know there’s a lot of negotiation to go on between now and the end of this bill,” Gottheimer said. 

They problem with ending the restriction on SALT deductions means that the richest people, who Biden is targeting with a hefty tax bill to fund his programs, will get a federal tax break by allowing them to deduct the full tax bill they pay in city and state taxes.

New York Governor Andrew Cuomo has been beating this drum since Biden’s election. In his new budget Cuomo raised taxes on all people. But he said their overall tax burden would be reduced once Congress repealed the SALT reduction limit.

Democrats only hold a 218-212 majority in the House, so every vote is important. Without a majority vote from the New York, New Jersey and California members Biden’s spend-crazed vision will be defeated.

The Biden administration has said earlier that they were not in favor of repealing SALT.

“It is not a revenue raiser and so it would add costs, and potentially significantly, to a package,” White House press secretary Jen Psaki said. “There’d have to be a discussion about how that would be paid for what would be taken out instead. And then there’s sort of a discussion of what’s most important to achieving our overarching objectives.”

Needless to say Democratic lawmakers from New York, New Jersey and California are seeing their blood pressure rise over the SALT issue.


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