Letter to Speaker Ryan and Chairman Brady - Voting 'NO' if Cuts to SALT Deduction Included in New Tax Bill

Letter

Dear Speaker Ryan and Chairman Brady:

As reports indicate the House of Representatives will vote to make the individual tax provisions included in the Tax Cuts and Jobs Act permanent, we urge leadership to stop any effort to permanently cap the deduction for State and Local taxes at $10,000 or we would be forced to oppose the bill.

The permanent cap on SALT will disproportionately affect the states of New York and New Jersey. As you know New York and New Jersey are donor states, meaning we receive less than what we give the federal government in taxes. While some of the most dependent states can receive twice in return for every dollar they send to the U.S. Treasury, states like New York and New Jersey receive only a fraction of the tax dollars sent to Treasury. This disproportionate spending of federal tax dollars will only be augmented if the cap on the deduction for state and local taxes is extended permanently.

The state and local tax deduction promotes homeownership, increased funding for local infrastructure projects, public education and other state run services -- programs that help foster U.S. production and reduce income inequality. Eliminating this deduction will eliminate the incentive for people to live where local government stewards the public. The cost of these local public services in communities across the country, especially in New York and New Jersey, will only increase further, negatively impacting those who benefit from these programs every day.

The elimination of SALT will have a tremendous impact on housing prices in the years to come though some reports show housing appreciation prices are already slowing in states like ours. Not only will an increase in the cost of local public services lower the value of local real estate, but without the ability to fully deduct your state and local taxes, future home sellers will have to account for money they would have had if they were able to fully deduct SALT. When the SALT deduction cap takes effect for the 2018 tax year, we will be able just how drastic the impact of a cap on SALT deduction will have on housing prices.

We all agree that individual tax payers should be treated the same as corporations and deserve to have their tax cuts made permanent but we cannot sit idle as a deduction that benefits American across the country is permanently dismantled. Thank you for your consideration.

Sincerely,