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Reps. Suozzi & Kim, National Groups that Represent Mayors, County Executives, and Cities Make Urgent Call to Repeal SALT Cap

June 30, 2021
Press Release
U.S. Conference of Mayors, National League of Cities, National Association of Counties, and New York State Association of Counties highlight how the SALT cap has hurt our nation’s cities and counties; Today’s press conference comes one day after Suozzi rallied a bipartisan group of Members of Congress on the House Floor calling for repeal of SALT cap

To keep momentum going on the need to repeal the SALT cap, Congressman Tom Suozzi (D-NY) and Congresswoman Young Kim (R-CA) organized a bipartisan push with our nation’s cities, counties, and mayors to bring attention to the fact that the SALT cap has severely undermined the ability of local governments to govern, while at the same time hurting middle class families.

 

Video from the event is found here.

 

Joining Suozzi and Kim in the call to repeal the SALT cap were:

  • The U.S. Conference of Mayors, who were represented by Gary McCarthy, the Mayor of Schenectady, New York
  • The National Association of Counties, who were represented by Kevin Boyce, the Commissioner of Franklin County, Ohio
  • The National League of Cities, who were represented by Irma Esparaza Diggs, Director of Federal Advocacy
  • The New York State Association of Counties, who were represented by Stephen Acquario, Executive Director

 

The elected officials and groups argued that the SALT cap has not only hurt the paychecks of their middle-class constituents, but made it difficult for local governments to raise the revenue they need to support education, public safety, housing, transportation, health care, and many other critical public services.

 

“Efforts to restore the SALT deduction are gaining momentum. Together, Democrats and Republicans – from the halls of Congress to local city governments – are calling for the restoration of the SALT deduction,” said Rep. Suozzi. “The cap on the SALT deduction has been a body blow to New York and middle-class families throughout the country. At the end of the day, we must fix this injustice.”

 

“California workers and families already pay high state and local taxes in addition to skyrocketing housing costs, with the median price of a single-family home in the state surpassing $800,000 this year. There’s no good reason why middle-class Californians should be burdened more with federal taxes,” said Rep. Young Kim. “Repealing the SALT cap is a commonsense fix to let taxpayers keep more of their hard-earned money. I’m proud to have helped introduce the SALT Deductibility Act and serve as a co-chair of the bipartisan SALT Caucus in Congress, and I will continue fighting to lower taxes and make life more affordable for my constituents.”

 

“The SALT cap increased taxes on hard working middle-class families. I am proud to stand with this bipartisan group of local government leaders from across the country in calling for its repeal,” said Gary McCarthy, Mayor of Schenectady, New York.

 

“One of the six original federal tax deductions, until recently, SALT was a staple of the federal tax code for over 100 years, largely benefiting the middle class,” said Franklin County, Ohio Commissioner Kevin Boyce, who chairs the National Association of Counties’ Finance, Pensions and Intergovernmental Affairs Committee. “The SALT deduction helped support vital investments in infrastructure, public safety, homeownership and education. We look forward to working with bipartisan allies to restore the SALT deduction, which preserved local decision-making and better enabled us to meet the needs of our constituents.”

 

“On behalf of the nation’s mayors and the people who live and work in our cities, The U.S. Conference of Mayors urges Congress to repeal the SALT cap and restore the full deductibility of state and local taxes. Since its enactment, the cap has been harmful to moderate-income taxpayers who are being subjected to double taxation. And, during a time when the COVID-19 pandemic has imposed enormous hardship on local budgets, it is further undermining the ability of local government to raise the revenue they need to support critical public services. That's why The U.S. Conference of Mayors wholeheartedly supports the bipartisan efforts of Congressman Tom Suozzi, Congresswoman Young Kim and others to repeal this unfair limit,” said Tom Cochran, CEO and Executive Director of the U.S. Conference of Mayors.

 

Stephen J. Acquario, Executive Director of the New York State Association of Counties said, “Over 3 million New Yorkers would benefit from abolishing the cap on SALT. These are middle class families who pay some of highest state and local taxes in the nation and can’t afford to be effectively “double taxed” by the federal government. If this misguided cap on SALT isn’t abolished soon, more New Yorkers may look to relocate to lower tax states, eroding communities and severely undermining local governments’ ability to raise revenue in support state and federally mandated programs. Counties are proud to stand with Congressman Suozzi in support of this bi-partisan effort to restore fairness to our tax code before it’s too late.”

 

“Local leaders everywhere know that the SALT deduction prevents double taxation of middle-class Americans, while also ensuring local governments can raise the revenues they need to make critical investments to support the communities they serve,” said Irma Esparza Diggs, Director of Federal Advocacy for the National League of Cities. “NLC remains committed to restoring the full deductibility of state and local taxes, so that cities, towns and villages can develop and operate their own tax systems. We applaud Representatives Suozzi and Kim for leading a bipartisan effort to eliminate the SALT cap and give local governments the flexibility they need to secure revenue streams to fund essential capital projects and services for their constituents.”

 

In 2017, the cap on the SALT deduction was put in place. Since then, it has resulted in double taxation on thousands of middle-class families by imposing a tax on taxes already paid. In high cost of living areas, the cap has continued to accelerate a race to the bottom that drives the wealthy to other states, often subsidized by the very states their new residents have left. This leaves middle-and lower-income taxpayers holding the bag to pay for school, police, fire, and other essential state and local services.

 

A detailed list of Suozzi’s efforts this year are found below:

 

In addition to bipartisan support in the House of Representatives (over 106 cosponsors), a repeal of the SALT deduction is supported by state leaders, associations, and unions including:

  • US Conference of Mayors
  • National Association of Counties
  • National League of Cities
  • International Association of Firefighters
  • National Association of Realtors
  • American Federation of Teachers
  • National Education Association
  • National Association of Police Organizations