Franklin Square, N.Y. – Today, U.S. Representative Andrew R. Garbarino (R-NY-02) announced the introduction of his bill, H.R. 2555, The Securing Access to Lower Taxes by ensuring (SALT) Deductibility Act at a press conference on Long Island alongside fellow New York Members and cosponsors of the legislation, Representatives Anthony D'Esposito (R-NY-04) and Nick Lalota (R-NY-01).
The bipartisan bill would allow taxpayers to fully deduct their state and local taxes on their federal income returns. Joining Rep. Garbarino as co-leads of the legislation are Representatives Josh Gottheimer (D-NJ-05), Young Kim (R-CA-40), Anna Eshoo (D-CA-16), Chris Smith (R-NJ-04), Brad Schneider (D-IL-10), Mike Lawler (R-NY-17), and Rob Menendez (D-NJ-08). Specifically, the SALT Deductibility Act wouldamend Section 164(b) of the Internal Revenue Code of 1986 to repeal the limitation on the deduction of state and local property and income taxes.
Watch the press conference here.
"The SALT deduction cap has devastated my community by placing an unfair financial burden on Long Islanders and on taxpayers across the country,"said Rep. Garbarino. "Long Islanders pay some of the highest property taxes in the country and, for the hardworking middle-class families in my district, the $10,000 cap means they are only able to deduct a fraction of what they pay from their federal income taxes. I am talking about police officers, firefighters, nurses, teachers, and small businesses owners who are being double taxed on money that was never available to them. This injustice has gone on long enough and, with this bipartisan legislation, we can finally right that wrong and provide much needed tax relief to millions of Americans." “Restoring the SALT deduction will get more dollars back into the pockets of hard-working, middle-class Jersey families who are already struggling with higher costs,” said Rep. Gottheimer. “The bill is supported by enough Republicans from Blue States that we would have the votes to block Red State attempts to gut SALT further and prevent it from coming back once the Tax Hike Bill expires in two and a half years.” The SALT deduction was capped at $10,000 in 2017 and has resulted in a tax increase for many middle-class families. The initial purpose of the SALT deduction, when it was first implemented more than a century and a half ago, was to prevent imposing federal taxes on top of state and local taxes already paid. "Southern Californians shouldn’t have to pay more federal taxes on top of their already high state taxes and rising costs of living and housing," said Rep. Kim. "We must act to right this wrong, which is why I am fighting to repeal the current cap on SALT deductions and lower taxes for my constituents. There are many of my colleagues on both sides of the aisle from states across the country whose constituents are unfairly hurt by the current cap on SALT deductions. I will keep working with my colleagues on both sides of the aisle to get this across the finish line." “Prior to President Trump’s 2017 tax law that placed a $10,000 cap on the deduction of state and local taxes, my constituents claimed a $63,083 deduction on their federal taxes on average. Since then, 200,000 families in my Congressional District have paid higher taxes,” said Rep. Eshoo. “This cap is an assault on the middle class, and the SALT Deductibility Act will provide essential tax relief for Californians by restoring this vital deduction.” "The arbitrary, unfair SALT cap places an unacceptable added burden on New Jersey taxpayers," said Rep. Smith, who strongly opposed and voted against the legislation that created the SALT cap in 2017. "New Jersey pays more than our fair share to the federal government, especially when compared to other states. New Jersey residents—who have already paid so much in taxes—need and deserve this critical relief." "The cap on SALT deductions has hurt Illinois families and local communities. Forcing Americans to pay federal tax on taxes they already paid to state and local governments is double taxation and it's wrong. In my Illinois district, approximately 42 percent of filers use the SALT deduction, and the average deduction is significantly higher – nearly double - the new cap. The SALT cap is not fair to America's middle class, and I'm proud to be leading the way with this bipartisan legislation,"said Rep. Schneider. "I am proud to be a co-lead sponsor of the SALT Deductibility Act,"said Rep. Lawler. "As a member of the newly formed SALT Caucus, I am committed to lifting or repealing the SALT Cap to ensure Hudson Valley families get the relief they desperately need and deserve." "Since 2017, New Jersey families have been unfairly penalized by the cap on the SALT deduction," said Rep. Menendez."This legislation will provide much-needed relief for working families in our district and across New Jersey. This is a significant step towards tax fairness for our constituents, and I look forward to working with my colleagues to get it done." "Already overtaxed Long Islanders are being forced to suffer under the current SALT cap, which is why I joined the bipartisan effort to repeal the cap as Vice Chair of the congressional SALT Caucus," said Rep. D’Esposito. "I am proud to co-sponsor this legislation that repeals the SALT cap and provides direct financial relief to New York neighbors." "New York has the dubious distinction of leading the country in two related categories: (1) Out-of-state migration; and (2) Property, income, and sales tax burden– which at 12.47% is the nation’s worst. While Governor Hochul and Democrats who have majorities in the State Assembly and Senate– and set state income and sales tax rates– have the greatest ability to cap and cut taxes and keep New Yorkers in New York, House Republicans from Long Island are determined to do what we can lower our neighbors’ state and local tax burden," said Rep. LaLota. "I am proud to cosponsor the SALT Deductibility Act to provide relief for families across Long Island. I am committed to doing whatever must be done to put more money in Long Islanders’ pockets, lower their tremendous tax burden, and help keep Long Islanders on Long Island." In addition to the co-leads, original cosponsors of the bill include Representatives Anthony D'Esposito (R-NY-04), Marc Molinaro (R-NY-19), Pat Ryan (D-NY-18), Tom Kean Jr. (R-NJ-07), Eric Swalwell (D-CA-14), Grace Meng (D-NY-06), Joe Morelle (D-NY-25), Sean Casten (D-IL-06), Dean Phillips (D-MN-03), Paul Tonko (D-NY-20), Zoe Lofgren (D-CA-18), Betty McCollum (D-MN-04), Salud Carbajal (D-CA-24), Bonnie Watson Coleman (D-NJ-12), Jake Auchincloss (D-MA-04), Raja Krishnamoorthi (D-IL-08), Bill Foster (D-IL-11), Suzanne Bonamici (D-OR-01), Linda Sanchez (D-CA-38), Mikie Sherrill (D-NJ-11), Andy Kim (D-NJ-03), Nick LaLota (R-NY-01), Mike Levin (D-CA-49), Jamie Raskin (D-MD-08), Jared Huffman (D-CA-02), Danny Davis (D-IL-07), Jimmy Gomez (D-CA-34), Judy Chu (D-CA-28), Eleanor Holmes Norton (D-DC- At-Large), Jimmy Panetta (D-CA-19), Julia Brownley (D-CA-26), and Jerry Nadler (D-NY-12). Full text of the bill can be found here. ### |
