Some of the leading US lawmakers from the high tax states rose on Thursday, when they launched a bipartisan “SALT” caucus.
The new 30-member group seeks to remove the $ 10,000 limit on federal income tax deductions for state and local taxes that were in place during the 2017 tax overhaul.
Pushing the SALT cover jeopardize President Joe Biden’s infrastructure and tax plans, because some House Democrats have threatened to oppose them unless the SALT issue is resolved.
The Biden administration has so far been reluctant to deal with this, as it would cost both government revenues and benefits in many cases to higher-income residents of states with tax rates. that is relatively high.
At the launch of the new caucus on Thursday, members of the group made an effort to emphasize how their problem affects the middle class in America.
“I think there is some misconception that this is not going to help middle-class families,” said Democratic Rep. Mikie Sherrill of New Jersey.
“More than half of our voters in my county deducted SALT prior to the 2017 tax plan, so this is really bad for teachers and police throughout my district,” she said. more.
The other members of the new caucus emphasized that their counties have higher income but also higher cost of living.
“This group will work together to educate people about how the middle class in my district – or in many counties here – is very different from the middle class in other counties in the country”, Congressman Says Tom Suozzi of New York.
“If you make $ 100,000 or $ 120,000 or $ 150,000 in my county, that’s middle class. In other parts of the country, that is considered higher income. ”
The Responsible Federal Budget Committee has called the deregulation of the limit a “pullback” move, noting that the Tax Policy Center estimates that 96% of the benefits from deregulation of SALT will fall under about the top 20% of taxpayers.
White House press secretary Jen Psaki told reporters Wednesday that authorities are interested in other ideas about how to pay for an infrastructure package and the SALT deduction “won’t be a driving force. increase sales ”.
“We are definitely happy to hear more from them and the impact and why they think this is so important to their states and their communities,” she said of fighting lawmakers. painting to remove the limit.
Jonathan Nicholson contributed to this report.