NACo sends letter to congressional leadership urging SALT deduction reform

Author

Image of Paige-Mellerio-2.png

Paige Mellerio

Legislative Director, Finance, Pensions & Intergovernmental Affairs | Local Government Legal Center
E Conover headshot

Emma Conover

Associate Legislative Director, Human Services and Education | Immigration

Upcoming Events

Related News

capitol

Key Takeaways

On February 11, NACo, along with our partners from the International City/ County Management Association, the National League of Cities, and the United States Conference of Mayors, sent a letter to the U.S. Congress urging state and local tax (SALT) deduction relief. The letter urges Congress to raise the cap on the SALT Deduction, to provide relief to American families facing double taxation and reverse an unfair double standard. 

What is the State and Local Tax deduction?  

The SALT deduction allows taxpayers to deduct state and local taxes from federal taxes, promoting the intergovernmental balance of taxation. Since the first Federal Income Tax Form in 1913, SALT has been a founding principle to Federalism and intergovernmental roles. The 2017 Tax Cuts and Jobs Act (P.L. 115-97) capped the State and Local Tax (SALT) deduction at $10,000, ending the full deductibility of state and local taxes from federal taxes. Counties opposed this portion of the tax reform law and urge Congress to reform the SALT deduction. 

As Congress looks to a new tax package, counties believe that relief from the SALT deduction cap will not only provide immediate relief to taxpayers but also enhance the ability of states and local governments to invest in our communities. To see how the current SALT Cap impacts your county, visit NACO’s SALT Profiles

To read the full letter, see here.

Tagged In:

Related News

Treasury Department
News

Treasury publishes new Do Not Pay matching program notice; NACo evaluating for comment

On May 18, the U.S. Department of the Treasury (Treasury) published a Federal Register notice establishing a new computer matching program under the Privacy Act of 1974. The notice authorizes Treasury to compare records held by about 40 of its programs against the Do Not Pay (DNP) Working System, a centralized verification portal operated by Treasury’s Bureau of the Fiscal Service. NACo will be submitting comments. 

Image of counting-money-breaker_1600.png
County News

OMB proposes major overhaul of federal grant rules

On May 29, the U.S. Office of Management and Budget (OMB), in coordination with all federal grantmaking agencies, published a proposed rule in the Federal Register rewriting 2 Code of Federal Regulations (CFR) Part 200 which is commonly referred to as Uniform Guidance, 2 CFR Part 200. This is the regulation that governs federal grants administered by all federal agencies that applies to counties and other entities. Teh proposed ruling  includes substantial changes to federal code. 

bike
News

NACo endorses the MINT Act to restore a proven credit enhancement tool for county bonds

NACo sent a letter to the U.S. Senate endorsing the Municipal Investment and Neighborhood Transformation Act (S. 3941), or MINT Act, bipartisan legislation introduced by Sens. Catherine Cortez Masto (D-Nev.), Todd Young (R-Ind.) and Jim Justice (R-W.Va.).