Legislators in the House of Representatives and Senate from high-tax, democratically oriented states introduced laws on Thursday to repeal an earlier provision President TrumpDonald TrumpPalm Beach, who is reviewing Trump’s stint on immigration reform in Mar-a-Lago, can’t wait to wait for the money: Five questions about the GameStop controversy | Biden, Yellen demand quick action for new help MOREThe 2017 Tax Cut Act, which limits state and local tax deduction (SALT).
The law’s introduction comes under pressure from a number of blue state legislatures to include the cap in coronavirus control legislation.
“The full SALT deduction needs to be restored,” said Rep. Thomas Suozzi (DN.Y.), the main sponsor of the House version of the bill. “Without the full SALT deduction, families will be leaving New York and the last thing we need.” Amid the health and economic devastation of COVID-19, our residents and taxpayers are said to be lost. Congress must act immediately. “
Suozzi’s bill is co-sponsored by six high-tax lawmakers, including Republicans Chris SmithChristopher (Chris) Henry SmithLawmakers Offering Bill Abolishing SALT Withdrawal Cap New Jersey Legislators Urge SALT Cap Abolished in Next Bailout Democrats agreed on top issues of this Congress – but will it hold? MORE (NJ), Andrew Garbarino (NY) and Young Kim (California).
Majority Leader of the Senate Charles SchumerChuck Schumer Immigration Reform Cant wait Psaki expects DHS candidate Mayorkas to lead the task force to reunite separated families. Biden DHS makes progress in the Senate and overcomes the hurdle of the Republicans MORE (DN.Y.) introduced a version of the bill in the Senate sponsored by Democratic Senators from New York, New Jersey, and Illinois along with the new chairman of the Senate Finance Committee Ron WydenRonald (Ron) Lee WydenHillicon Valley: Fallout of Reddit-powered stock rallies, GameStop purchase ban continues | Legislators are grilling the NSA after years of violating a massive Russian hack | Facebook is reportedly considering an antitrust lawsuit against Apple Lawmakers Grill NSA for years of infringement in a massive Russian hack. The legislators are proposing a bill to lift the upper limit for the SALT deduction MORE (D-ore).
The 2017 tax law limited the SALT deduction to $ 10,000. Politicians from high-tax countries have spoken out against the cap, arguing that it harms their residents and limits their states’ ability to provide robust public services. But Republicans, as well as some left-wing tax experts, are defending the cap on the deduction, saying the repeal would primarily benefit high-income taxpayers.
The House passed two coronavirus relief bills last year that included a temporary lifting of the SALT deduction cap, but the Senate did not use them. The New Jersey House delegation on Wednesday called on the Congress leaders and the Biden administration to include the repeal in the next aid package.
Getting the cap lifted in an aid package this year could be a challenge for lawmakers as Republicans and some centrist Democrats want to cap the price of a stimulus measure.
The lifting of the SALT cap was not included in a $ 1.9 trillion proposal presented by President Biden. Finance minister Janet YellenJanet Louise YellenOn The Money: Five Questions About the GameStop Controversy | Biden, Yellen call for swift action with regard to new aid Legislators offer draft law to lift the upper limit for the SALT deduction to Biden, Yellen call for swift action with regard to the coronavirus aid package MORE said during her confirmation hearing that she would like the division to investigate the impact of the cap on state and local governments before taking a position on the cap.