A SALTY Compromise to Consider for Tax Reform
Dear Members of Congress:
As representatives of high-tax states, you are acutely aware of the importance of the state and local tax deduction, otherwise known as the SALT deduction. Unfortunately, your colleagues on the House Ways and Means Committee have proposed the elimination and most recently, capping, of the SALT deduction despite the valiant efforts of many of you to save it or keep it in its current form. In fact, some committee members of low-tax states have openly suggested that the SALT deduction be eliminated to punish states that are operated inefficiently or expensively, without any appreciation of or regard for the extraordinary demands imposed on dense, urbanized states, particularly “blue” states. Likewise, Treasury Secretary Steve Mnuchin’s rationale for eliminating the SALT deduction is that the federal tax code needs to "stop subsidizing states."