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State and Local Taxes

N.Y. Congressman Requests Trump’s Support For Tax Cap Elimination

U.S. Rep. Pat Ryan (D-NY) urged the president-elect in a letter to support restoring the state and local tax deduction.

U.S. Rep. Pat Ryan (D-NY) speaks during the fourth day of the Democratic National Convention at the United Center in Chicago on Aug. 22.(Jeremy Hogan/SOPA Images/Sipa USA/Alamy Live News)

By Paul Kir
Daily Freeman, Kingston, N.Y.
(TNS)

KINGSTON, N.Y. — U.S. Rep. Pat Ryan has sent a request to president-elect Donald Trump in the congressman’s ongoing effort, unsuccessful so far, to eliminate a cap on a federal tax program.

In what is Ryan’s first communication to Trump since the election, the Gardiner (N.Y.) Democrat urged the soon-to-be commander-in-chief to support restoring the state and local tax (SALT) deduction “which will provide significant relief from double taxation,” his office has said.

“Today, in a letter to President-Elect Donald Trump and his Transition co-chairs Linda McMahon and Howard Lutnick, Congressman Pat Ryan called on Trump to keep his campaign promise to permanently lift the SALT cap and to immediately start conversations with both Democrats and Republicans in Congress so the SALT Deductibility Act, a stand-alone bill to end this blatant double-taxation, is ready to pass on day one of the 119th Congress,” Ryan’s office said in a statement. “In the letter, Ryan pledged to work in good-faith across party lines with any Republican willing to put combating the affordability crisis over partisan infighting. While Trump’s 2017 tax bill put the SALT cap in place, the former and future President promised on the campaign trail to ‘get SALT back.’”

Ryan said the effort is a priority.

“Making life more affordable for my constituents is my top priority. And while I don’t agree with President-elect Trump on much, I’ll work with anyone to lower the cost of living and deliver economic relief for Hudson Valley families,” Ryan said in a statement. “The SALT cap is blatant double-taxation on the teachers, firefighters, police officers, and so many others getting crushed by the affordability crisis. I’m taking Trump at his word that he wants to permanently lift the cap, and am calling on him to immediately start working in good-faith with both Democrats and Republicans so the SALT Deductibility Act is ready to pass on the first day of the 119th Congress.”

In his letter to Trump, Ryan emphasized the importance of the effort. The letter was also signed by U.S. Rep. Josh Gottheimer, a Democrat from New Jersey.

“We write to express our sincere interest in working together to deliver for the American people by repealing the state and local tax (SALT) deduction cap once and for all, the letter said. “As Members of Congress, we are committed to the financial well-being of our hardworking constituents and all Americans, which is why we are reaching out today to urge you to fulfill one of your key campaign promises—the repeal of the SALT deduction cap.”

The letter goes on to say that the two Democrats do not see eye-to-eye with Trump on many matters.

“While we disagree on many of the issues facing our great nation, we are eager to capitalize on this stated common ground and swiftly overturn this double taxation,” the letter said.

“As you are aware, the SALT deduction cap, implemented through the 2017 Tax Cuts and Jobs Act, has disproportionately impacted working families in states like New York and New Jersey where residents are already shouldering a significant tax burden and dealing with an affordability crisis,” the letter said. “By capping the SALT deduction, many taxpayers are effectively subjected to double taxation, adding to their financial stress. We were encouraged to see that during your campaign, you came to the conclusion that this policy needs to be reversed.”

In February 2023, Ryan joined Democrats and Republicans in establishing the bipartisan SALT Caucus for the 118th Congress. Ryan said the bipartisan group was dedicated to restoring the State and Local Tax deduction.

The 2017 tax law imposed a $10,000 cap on the SALT deduction.

“This policy violates 150 years of precedent in federal tax law, disproportionately harms New York, and unfairly imposes a marriage penalty on couples filing jointly by having them face the same $10,000 cap as individuals,” a press release from Ryan’s office had said.

According to research by the National Association of Realtors, in New York, 35% of taxpayers claimed the SALT deduction in 2016 before it was capped.

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