New York Governor Hochul issued a statement on Wednesday (8th) urging Republican members of Congress from New York to push for the complete repeal of the “State and Local Tax Deduction Cap” (SALT), emphasizing its crucial importance to middle-class families in New York. Hochul stated that since the implementation of this policy in 2018, New York residents have been losing up to $12 billion per year, directly harming the interests of middle-class families.
The repeal of the “State and Local Tax Deduction Cap” (SALT) has long been a hot topic in the U.S. Congress. Under the current regulations, the cap for SALT deductions is $10,000, a policy that disproportionately impacts residents of high-tax “blue states” like New York. The Republican Party is currently considering extending certain provisions of the 2017 tax reform law, with SALT potentially becoming a focal point in these negotiations.
President-elect Trump is poised to return to the White House and plans to meet with some Republican members, including Congressman LaLota and Lawler. They have publicly advocated for increasing the cap on SALT deductions on multiple occasions. However, despite their lobbying efforts with conservative colleagues from other states over the past year, a consensus has not been reached. Trump promised to repeal the SALT deduction cap during his campaign event in Long Island last year.
Democratic lawmakers are also actively involved in discussions surrounding the SALT issue. On Tuesday, Democratic Congressman Ryan called on Trump to consider Democratic opinions in the SALT discussions.
Furthermore, New York Congressman Suozzi announced on Thursday (9th) that he has been reappointed as a member of the influential House Committee on Ways and Means and emphasized his commitment to fight for the removal of the SALT deduction cap.
The direction of SALT policy could have a direct impact on New York State’s budget. The New York State Legislature reconvened for a new session on Wednesday, with the state budget deadline set for April 1st. The outcome of SALT may become a crucial factor in budget negotiations.
Hochul reiterated her call on Friday (10th) for Republican members of Congress to fulfill their commitments to the people of New York and expressed hope for both sides to collaborate in resolving this issue. She firmly stated, “What New Yorkers need is the complete repeal of the SALT cap, not a half-baked solution.”