U.S. Representative Andrew R. Garbarino announced the introduction of his bill, H.R. 2555, The Securing Access to Lower Taxes by ensuring (SALT) Deductibility Act at a press conference on Long Island on April 14 alongside fellow New York members and cosponsors of the legislation, Representatives Anthony D’Esposito and Nick Lalota.
The bipartisan bill would allow taxpayers to fully deduct their state and local taxes on their federal income returns. Specifically, the SALT Deductibility Act would amend Section 164(b) of the Internal Revenue Code of 1986 to repeal the limitation on the deduction of state and local property and income taxes. Joining Rep. Garbarino as co-leads of the legislation were fellow Representatives Josh Gottheimer (D-New Jersey), Young Kim (R-California), Anna Eshoo (D-California), Chris Smith (R-New Jersey), Brad Schneider (D-Illinois), Mike Lawler (R-New York), and Rob Menendez (D-New Jersey).
“The SALT deduction cap has devastated my community by placing an unfair financial burden on Long Islanders and on taxpayers across the country,” Garbarino said. “Long Islanders pay some of the highest property taxes in the country and, for the hardworking middle-class families in my district, the $10,000 cap means they are only able to deduct a fraction of what they pay from their federal income taxes. I am talking about police officers, firefighters, nurses, teachers, and small business owners who are being double-taxed on money that was never available to them. This injustice has gone on long enough and, with this bipartisan legislation, we can finally right that wrong and provide much-needed tax relief to millions of Americans.”
The SALT deduction was capped at $10,000 in 2017 and has resulted in a tax increase for many middle-class families. The initial purpose of the SALT deduction, when it was first implemented more than a century and a half ago, was to prevent imposing federal taxes on top of state and local taxes already paid.
“Already overtaxed Long Islanders are being forced to suffer under the current SALT cap, which is why I joined the bipartisan effort to repeal the cap as Vice Chair of the congressional SALT Caucus,” D’Esposito said. “I am proud to co-sponsor this legislation that repeals the SALT cap and provides direct financial relief to New York neighbors.”
“New York has the dubious distinction of leading the country in two related categories: (1) 0ut-of-state migration; and (2) property, income, and sales tax burden – which at 12.47% is the nation’s worst. While Governor Hochul and Democrats who have majorities in the State Assembly and Senate – and set state income and sales tax rates– have the greatest ability to cap and cut taxes and keep New Yorkers in New York, House Republicans from Long Island are determined to do what we can lower our neighbors’ state and local tax burden,” Rep. LaLota said. “I am proud to cosponsor the SALT Deductibility Act to provide relief for families across Long Island. I am committed to doing whatever must be done to put more money in Long Islanders’ pockets, lower their tremendous tax burden, and help keep Long Islanders on Long Island.”
In addition to the co-leads, original cosponsors of the bill include D’Esposito, LaLota, Marc Molinaro (R-New York), Pat Ryan (D-New York), Tom Kean Jr. (R-New Jersey), Eric Swalwell (D-California), Grace Meng (D-New York), Joe Morelle (D-New York), Sean Casten (D-Ilinois), Dean Phillips (D-Minnesota), Paul Tonko (D-New York), Zoe Lofgren (D-California), Betty McCollum (D-Minnesota), Salud Carbajal (D-California), Bonnie Watson Coleman (D-New Jersey), Jake Auchincloss (D-Massachusetts), Raja Krishnamoorthi (D-Illinois), Bill Foster (D-Illinois), Suzanne Bonamici (D-Oregon), Linda Sanchez (D-California), Mikie Sherrill (D-New Jersey), Andy Kim (D-New York), Mike Levin (D-California), Jamie Raskin (D-Maryland), Jared Huffman (D-California), Danny Davis (D-Illinois), Jimmy Gomez (D-California), Judy Chu (D-Califormia), Eleanor Holmes Norton (D-District of Columbia-At-Large), Jimmy Panetta (D-California), Julia Brownley (D-California), and Jerry Nadler (D-NY-12).
Full text of the bill can be found here.