SALT Deductions

Floor Speech

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Mrs. KIM of California. Madam Speaker, I thank my friend, Representative Suozzi from New York, for yielding. And I want to thank him for working with me in a bipartisan push to repeal the cap on SALT deductions that is hurting American workers and families.

Californians in the 39th District--which I represent--and across our State, have been burdened enough by high State and local taxes in addition to high cost of living and housing. The last thing they need is to be hurt even more because of these State and local taxes at the Federal level.

I have heard from many of my constituents about the burdensome taxes they have to pay as a result of the SALT cap. These are workers, business owners, and families who are struggling to survive due to the COVID-19 pandemic. It is estimated that in the 2022 tax year, California's 39th District will pay on average $600 million more in taxes.

In 2018 alone, Californians paid an additional $11.2 billion in Federal taxes because of the SALT cap. That translated into 55,000 fewer jobs and a loss of $3.4 billion in wages.

Assuming a middle-of-the-road rate of 25 percent, an average taxpayer who claimed itemized deductions would have saved $6,521 in taxes if the SALT deduction were not capped at $10,000. These high tax rates are on top of the skyrocketing housing prices across the State. In fact, according to the National Association of Realtors, the median price for a single-family home in California has increased by more than 39 percent in the past year alone, surpassing the $800,000 threshold for the first time in April of this year.

That is why it is a top priority of mine in Congress to make life more affordable for Californians and repeal the SALT cap. This is hurting my constituents and many middle-class Americans across the Nation.

I was proud to join my friend, Representative Suozzi, as an original cosponsor of the SALT Deductibility Act. This bill would simply repeal the cap on SALT deductions and send a message: No more to burdensome taxes, and yes to our families keeping more money in their hands.

I am also proud to serve as co-chair of the bipartisan SALT Caucus as we continue to work together to repeal this cap and help lower taxes for my constituents and businesses.

I will continue to do all I can to deliver results for California's 39th District. I thank Representative Suozzi for organizing this Special Order and for his leadership to repeal the SALT cap.

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Mrs. KIM of California. Madam Speaker, on a regular basis we have had townhalls and we have had regular meetings throughout my business roundtable discussions, and they brought this issue up over and over.

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Mrs. KIM of California. In the last several years we have had many thousands of Californians leaving to other States like Texas, and I have to literally go over there to meet my friends and listen to these problems. So, yes, this is a major issue, and I will continue to work with the gentleman to repeal the SALT cap.

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