Cities and Counties Share Support for Reforming SALT Deduction

National Association of Counties, National League of Cities urge Congress to pass the SALT Marriage Penalty Elimination Act

WASHINGTON – The National Association of Counties (NACo) and the National League of Cities (NLC) today issued a joint statement thanking House Speaker Mike Johnson and Congress for taking up the bipartisan SALT Marriage Penalty Elimination Act (H.R. 7160) and urging its swift passage.

NACo and NLC last month sent a letter to congressional leaders encouraging relief from the cap on state and local tax (SALT) deductibility in any tax package.

The SALT Marriage Penalty Elimination Act would reform the penalty in which married couples filing taxes jointly are limited to $10,000 in SALT deductions the same way individuals are, effectively reducing the cap on married people to $5,000 per person.

NLC CEO/Executive Director Clarence Anthony and NACo CEO/Executive Director Matthew Chase said:

“Many residents, especially homeowners, face higher federal tax bills as a result of the $10,000 cap on the SALT deduction, leaving less income for essential needs such as childcare, education, healthcare and housing.

“Furthermore, the cap only applies to individuals and families and not state and local taxes paid by certain businesses. In other words, working families and taxpayers – who make up the backbone of our economy – are subjected to double taxation whereas landlords and investors are not.

“Capping the SALT deduction has limited state and local control of tax systems, shifting the intergovernmental balance of taxation at a time when the responsibilities of counties and municipalities have never been greater.

“The SALT Marriage Penalty Elimination Act would provide immediate relief to taxpayers while enhancing the ability of states and local governments to invest in our communities.

“This legislation represents a clearcut way for Congress to address the cap in a way that will have a direct impact on residents, ensuring married couples filing jointly do not face an even tighter cap than individuals.

“We thank the bipartisan SALT Caucus, Speaker Johnson and the U.S. House for their consideration of this bipartisan legislation and urge its swift passage.”