Congress and the White House are currently working on a federal tax reform proposal that would significantly weaken over 100 years of fiscal federalism, resulting in a $1.3 trillion federal revenue grab from homeowners that would threaten the ability of county residents to afford state and local taxes and support state and local services. Since the 1862 Civil War tax and the original 1913 federal tax code, our nation has avoided the double taxation of our residents through the deduction of state and local taxes, such as income, property and sales taxes.
Right now, as Congress considers tax reform, the elimination of State and Local Tax (SALT) deductions is the primary pay-for/revenue offset at $1.3 trillion, along with the elimination of personal exemptions. As outlined by the Government Finance Officers Association (GFOA) calculator, a disproportionate share of the new federal revenue would come from middle class homeowners with household incomes of $50-250K. The major issue for our nation's county governments is that home values are projected to decrease by 10 percent and the federal government will be eliminating a major incentive for homeownership, instead changing the federal tax code to reward renters.
We are asking NACo members to submit op-ed articles for your newspapers and to assist us with our social media campaign to encourage federal lawmakers to preserve the full SALT deduction as part of federal tax reform - similar to 1986 when President Reagan decided to keep the SALT deduction in his historic tax package.
Here are some links to sample materials:
- Click here to view county-by-county SALT profiles.
- Click here to view state-by-state SALT profiles.
- Click here to view our SALT one-pager
- Grassroots Action Hub for Coalition
- GFOA Homeowner Tax Calculator
- Shelby County, Tennessee Mayor Mark Luttrell op-ed
- NACo President Roy Charles Brooks op-ed in County News
If you need legislative help please contact NACo Legislative Director Deborah Cox at firstname.lastname@example.org or 202.942.4286. If you need public affairs/press assistance please contact NACo Public Affairs Director Brian Namey at email@example.com or 202.942.4220.