Nearly all NY Democrats vow to vote against Biden tax hikes in House unless SALT cap repealed

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Nearly every member of the House in the New York delegation promised to vote against President Biden’s tax hike to fund his $2.2 trillion spending bill unless the $10,000 cap on State and Local Tax (SALT) deductions is repealed. 

That amounts to 17 of the 19 New York Democrats, votes House Speaker Nancy Pelosi cannot afford to lose to pass the American Jobs Plan. The bloc sent a letter to Pelosi, D-Calif., and House Majority Whip Steny Hoyer, D-Md. 

The only Democrats who did not sign on were Reps. Alexandria Ocasio-Cortez and Kathleen Rice. 

"The full SALT deduction is a matter of fundamental fairness in avoiding double taxation of the same income and was a fundamental part of the income tax system since its inception in 1913," the New Yorkers wrote. 

"The SALT deduction ensured that New York state middle-class families were not taxed twice on their income, which is critical when New Yorkers already pay about $40 billion more in federal taxes than they receive from the federal government."

PELOSI OPENS DOOR TO LIFTING SALT TAX CAP 

Pelosi earlier this month said she hopes to restore the unlimited SALT deduction in the broader package. "Hopefully we can get it into the bill," Pelosi said during a Thursday news conference. "I never give up hope for something like that."

Eliminating the SALT deduction cap would require Democrats to vote for a policy that disproportionately benefits wealthy Americans living in blue states. 

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The SALT deduction from the federal government allows taxpayers to reduce their federal tax liability based on their local and state tax payments. The 2017 Tax Cuts and Jobs Act capped these deductions at $10,000.

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