In response to the release of the congressional and administration tax reform proposal “Unified Framework for Fixing Our Broken Tax Code,” the National Association of Counties issued the following statement. NACo Executive Director Matthew Chase said:
“We are pleased to see the preservation of tax-exempt municipal bonds, a key financing tool counties and states leverage to build roads, schools, hospitals and other public facilities. However, we have major concerns with the proposal to eliminate federal deductibility of state and local taxes, or SALT.
“Counties are opposed to this $1.3 trillion federal money grab. Eliminating the SALT deduction would force undue burden upon the backs of middle-class homeowners in every state.
“Even if the standard deduction were doubled, middle-class homeowners would see their federal tax bills increase by an average of $815.
“There is a reason the SALT provision extends back to 1913, the emergency tax code in 1862 and even to our founding fathers: Local communities are uniquely positioned to meet local needs. State and local taxes – the only mandatory payments that are federally deductible – allow local communities to meet local needs.
“While we share the goals of kick-starting the national economy and reducing federal deficits, the reality of this proposal doesn’t match the rhetoric. We can’t achieve these goals by forcing residents to pay taxes on their taxes.
“Counties stand ready to work with the administration and Congress to pursue common-sense tax reform that benefits all of our residents.”
Earlier this month, NACo helped to launch a broad, bipartisan coalition – Americans Against Double Taxation – comprised of groups that successfully fought to preserve SALT in the 1986 tax reform package. For more information, visit http://www.AmericansAgainstDoubleTaxation.org/.