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Support a Bill That Would Repeal Limits on Deducting State and Local Taxes (aka SALT Deductions)

Support bills making their way through Congress that support repealing limits on deducting state and local taxes, aka SALT deductions.

One of the many forms of villainy that the Republicans shoved through in their 2017 tax bill was a cap on deductions for state and local taxes, which are shorthanded to SALT deductions.

Until the 2017 bill passed, taxpayers could deduct the amounts they paid in state, local, and property taxes when filing their federal taxes. The Republicans changed that to cap SALT deductions at an annual maximum of $10,000.

The GOP did this, pretty much, to stick it to wealthy residents of blue states that tax people enough to underwrite services that ensure the place is livable and modestly functional by 21st century standards. Taking away SALT deductions inflicts unnecessary pain that undermines a state’s ability to run itself and provide for its people.

The SALT deduction cap needs to go, and go yesterday. Fortunately, there are bills wending their way through Congress now that will kill the cap.

The bill’s full name is “To amend the Internal Revenue Code of 1986 to repeal the limitation on the deduction for certain taxes, including State and local property and income taxes.”

The House of Representatives version, sponsored by Thomas Suozzi of New York’s 3rd District, is H.R. 613.

The Senate version, sponsored by Chuck Schumer of New York, is S. 85.

Both versions were introduced in Congress on January 28, 2021.

Today we at OTYCD ask you to call all three of your Members of Congress (MoCs) and ask them to pass the bill that repeals the cap on SALT deductions.

Before calling, please check your MoCs’ social media feeds and the press section of their websites, to see if they’ve said anything about the bill. If they have, include a reaction to their statement in your call.

Find your MoCs here:

https://whoaremyrepresentatives.org

Sample script: “Hello [House Rep/Senator Lastname,] I am [Firstname Lastname,] from [town, state, and zip code]. I am calling to ask you to pass [H.R. 613/S. 85], a bill that would repeal the cap on state and local tax deductions, which are better known as SALT deductions.

The Republicans pushed the $10,000 cap through in the much-hated 2017 tax bill, evidently to punish people who have the audacity to live in states that strive to provide modern services to their residents. People in California and New York tend to take the biggest hit–imagine that?

[If you are represented by Schumer or Suozzi or both: I see that you sponsored [H.R. 613/S. 85]. I thank you for stepping up and devoting your energies to righting this wrong.]

As a taxpayer, I find it reasonable to deduct state and local taxes from the amount I pay when I file my annual federal taxes. I also support competent government and I recognize the role of taxes in providing the funds that allow government to do its work. For all these reasons, I want the bill to become law.

Thank you for taking my call.”

Learn what SALT deductions are:

State and Local Tax (SALT) Deduction

See the Govtrack.com page on H.R. 613:

https://www.govtrack.us/congress/bills/117/hr613

See the Govtrack.com page on S. 85:

https://www.govtrack.us/congress/bills/117/s85

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