U.S. House member Nicole Malliotakis. Bloomberg
Republican New York lawmakers are seeking to expand the state-and-local (SALT) tax break.
Widening
the measure was previously championed by Democrats, signaling that the
issue cuts primarily along regional rather than party lines.
- The
SALT tax break allows New York taxpayers to deduct what they pay in
state and local levies from their federal taxable income.
- The
measure is less politically charged in lower tax areas where the average
SALT bill sits below the cap on how much local tax can be written off.
- Democrats
tried unsuccessfully to raise the cap on local tax deductions that
taxpayers can claim with SALT, which is currently set at $10,000.
- They
focused attention on New York, New Jersey, and California, where higher
taxes and property values generate higher SALT bills.
- New York's Republican congressional representatives saw their numbers increase when the GOP flipped four New York House seats in November.
- As New York's Republican congressional representation grew, raising the SALT cap became a major Republican issue in the region.
- Republican
Representative Nicole Malliotakis said she is exploring options that
include doubling the $10,000 cap for married couples, raising it with
inflation, and removing it entirely for households earning under
$400,000.
