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New York lawmakers threaten Biden's infrastructure tax hikes without local tax break

PoliticsApr 13, 2021 08:40PM ET
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© Reuters. U.S. President Biden meets with members of Congress at the White House in Washington

WASHINGTON (Reuters) - Seventeen New York state Democratic lawmakers on Tuesday said they will not support proposed tax increases to pay for President Joe Biden's infrastructure plan unless it also rolls back a 2017 tax change that hurt high earners in some states.

The group urged the full repeal of the provision, which limited to $10,000 the state and local taxes that households itemizing deductions could write off their federal returns.

Known as the SALT cap, it was part of the $1.5 trillion tax overhaul signed by President Donald Trump in 2017.

"We stand ready to work with you on this critical issue, and we will not hesitate to oppose any tax legislation that does not fully restore the SALT deduction," the group, led by Representatives Tom Suozzi and Jerry Nadler, wrote in a letter to House Democratic leadership.

Biden's party narrowly controls the House of Representatives and the Senate, meaning he can ill afford to lose such a large number of Democratic votes. His $2.3 trillion proposal to rebuild crumbling U.S. roads and bridges would be paid for by hiking the U.S. corporate tax rate to 28% from its current 21%.

Leading Democrats in Congress are sympathetic to the idea of repealing the SALT cap, which would benefit primarily people making over $100,000 a year in high-tax states like New York and California.

House Speaker Nancy Pelosi, of California, has expressed sympathy for repeal, while Senate Majority Leader Chuck Schumer, of New York, has co-sponsored legislation to eliminate the cap.

But the White House has said removing the cap is not part of the infrastructure proposal. White House spokeswoman Jen Psaki said recently that if Democrats want to eliminate the deduction - and propose a way to pay for it, "we're happy to hear their ideas."

Capping the SALT deduction helped pay for the Republicans' 2017 tax law, which lowered taxes for wealthy Americans and slashed the corporate tax rate. Republicans generally oppose restoring the deduction, which they view as largely benefiting Democratic voters.

New York lawmakers threaten Biden's infrastructure tax hikes without local tax break
 

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Comments (9)
Rick Baier
Rick Baier Apr 13, 2021 11:55PM ET
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So many baby boomers and young working families have left New York. The leaders are completely Oblivious
Edward Gerety
EdwardTjGerety Apr 13, 2021 11:05PM ET
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We need to roll back the SALT limitations as $10K only covers half of one of my houses. Trump screwed the wealthy with this limitation and it is time for Biden to return our money back to the upper class.
Rick Baier
Rick Baier Apr 13, 2021 11:05PM ET
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A Democrat is gonna return money. Buddy I seriously I'm not kidding laughed so hard.
Connecticut Yankee
A_Jaundiced_Eye Apr 13, 2021 9:23PM ET
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Don't worry, Liberals. You'll get what you want.  "Cav'n Joe Biden" always backs down.
Chinedu Amankulor
Chinedu Amankulor Apr 13, 2021 8:59PM ET
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wild horses need new fences paid for trillions of dollars...serious debate would focus on itemized spending not that state piggy feeder and it's us greed for cheaper thrills and business greed that caused cheaper China wares that fatten hogs for slaughter...bigger is always better, lies are to be unraveled in layered amounts over time in Georgetown foie de gras, and the response to obvious inefficiencies is to ignore them until debt chokes the hog and the piggy feeders scream for cheaper thrills. u could...what? fix the market so I lose? I could always sell my lobbying & tax law so NY state can get higher federal deductions
Joe Lock
Joe Lock Apr 13, 2021 7:39PM ET
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They could fix the roads so they never fall apart but that would mean job loss.
danny Levine
danny Levine Apr 13, 2021 7:17PM ET
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bailouts and far left agenda
Edward Gerety
EdwardTjGerety Apr 13, 2021 7:17PM ET
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It is a bailout but my NYC condo costs me $23k a year in taxes. My Florida house another $17k. The $10k cap is ridiculous.
Saroop Calvete
Saroop Calvete Apr 13, 2021 6:46PM ET
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"His $2.3 trillion proposal to rebuild crumbling U.S. roads and bridges" In reality, it is full of pork and only a small percentage of the expenditures are earmarked for true infrastructure.
Steve Lora
Steve Lora Apr 13, 2021 6:45PM ET
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Lexington Ave still needs repairs. I ts full of holes and uneven pavement fromE 57th to 42nd Also, the bridge at 207th Manhattan to Bronx shakes when the city bus goes over.
Roger Miller
Roger Miller Apr 13, 2021 6:27PM ET
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Quit calling it "infrastructure".  A simple Google of the term will reveal that only a small portion goes to actual "infrastructure".  Apparently we're so high tech now that we no longer need good roads, bridges, and utilities.
Joel Hauser
Joel Hauser Apr 13, 2021 6:27PM ET
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Do you stay all day in your house and sustain on just oxygen?
 
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