NACo sends letter to congressional leadership urging SALT deduction reform
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Paige Mellerio
Emma Conover
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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.
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