Letter to the Hon. Kevin Brady, Chairman of the Committee on Ways and Means and the Hon. Richard Neal, Ranking Member of the Committee on Ways and Means - Congressman Raja Krishnamoorthi Urges Chairman Brady And Ranking Member Neal Of The Ways And Means Committee To Preserve Key Tax Deduction For Working Families

Letter

Dear Chairman Brady and Ranking Member Neal:

As part of its tax reform efforts, Congress is considering eliminating the state and local tax (SALT) deduction. Working families across the country depend on this deduction each year, and I respectfully request that you maintain the SALT deduction in any comprehensive tax reform package. Eliminating the SALT deduction would equate to a significant tax increase on working families and make it much more difficult for hard-working Americans to get ahead.

If the SALT deduction is repealed, millions of families will feel it in their pocketbooks. In 2015 alone, 40% of households earning $50,00 to $75,000 claimed this deduction. The SALT deduction is not just a benefit for high-tax states, but affects every homeowner via property taxes; 85% of all itemizers are able to deduct their property taxes thanks to the SALT deduction.

This will have a real impact on working families nationwide. For example, in my district, the SALT deduction allows families in Cook County to save an average of $4,100 per year. In Kane and DuPage counties, the numbers are even greater: $5,000 and $6,600 respectively.

In addition to providing economic certainty for middle class families, the SALT deduction contributes to the stability of state and local tax revenues that are essential for providing public services. For this reason, several bipartisan and nonpartisan organizations have spoken out in support of the SALT deduction, including: The National Governors Association, the United States Conference of Mayors, the National Conference of State Legislatures, the National Association of Counties, and the Council of State Governments.

The SALT deduction predates the creation of the income tax in 1913. The Revenue Act of 1862, levied to finance the Civil War, allowed taxpayers to deduct local taxes from their federal tax burden. For over a century, it has prevented the double-taxation of working families.

Thank you for your work on tax reform and for your consideration of this matter. For the sake of middle class and working families, I strongly urge you to not eliminate the SALT deduction. I look forward to hearing from you.

Sincerely,

Raja Krishnamoorthi
Member of Congress

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