U.S. Reps. Andrew Garbarino (R-NY) and Young Kim (R-CA) on Wednesday joined a bipartisan team to relaunch the SALT Caucus in preparation for another fight to end the $10,000 limit on the state and local tax (SALT) deduction that’s currently slated to sunset after 2025.
State and local taxes are deductible on itemized federal income tax returns, however, the Tax Cuts and Jobs Act of 2017 capped the SALT deduction at $10,000 for tax years 2018 through 2025.
“As tax day approaches, it marks another year of my constituents getting the short end of the stick because it’s another year that they’re not able to deduct the entirety of their state and local taxes,” said Rep. Garbarino, one of four SALT Caucus co-chairs, along with Rep. Kim and U.S. Reps. Josh Gottheimer (D-NJ) and Anna Eshoo (D-CA).
Rep. Garbarino said that in his district, there are teachers, firefighters, and police officers whose property taxes alone far exceed the $10,000 cap.
“These are hard-working, middle-class Americans who are being double taxed and penalized for living in a high-cost, high-productivity area,” he said. “We on the SALT Caucus stand together, united and committed to finding a bipartisan fix to an injustice that affects working-class Americans across the country.”
The same is true for constituents in her California district, said Rep. Kim, who added that they’ve been burdened enough by high state taxes and the rising costs of living and housing.
“They shouldn’t be hurt even more for state and local tax costs at the federal level,” the congresswoman said. “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.”
During a press conference held earlier this week, the SALT Caucus members said they will work on a bipartisan plan targeting specific policies that would provide their constituents with relief from the SALT cap, and they hope to become the lead caucus for any forthcoming negotiations.
Among the other 29 SALT Caucus members is U.S. Rep. Michelle Steel (R-CA).