Dem governors plead with Biden for tax relief via return of SALT deduction


Blue-state governors are getting SALT-y with President Joe Biden.

Gov. Cuomo has signed on with six other Democratic governors to beg Biden for an end to the state and local tax deduction cap that has been in place since 2017 — and is costing top earners in high-tax states up to $80 billion a year.

“Capping SALT deductions was based on politics, not logic or good government,” Cuomo and the governors of New Jersey, California, Connecticut, Hawaii, Illinois and Oregon complained in a joint letter sent to the White House Friday.

“This assault disproportionately targeted Democratic-run states,” they wrote.

The SALT, or State and Local Tax, cap was a feature of President Donald Trump’s 2017 tax reform bill. For decades, residents of high-tax states like New York had been allowed to deduct all of their state, local and property taxes from their federal tax returns.

Trump limited the deduction to $10,000, while slashing federal income tax rates — a change Cuomo blasted as “a modern form of treason” at the time.

New Jersey Gov. Phil Murphy speaks during his 2021 budget address at SHI Stadium at Rutgers University on Aug. 25, 2020.
New Jersey Gov. Phil Murphy is among those who sent a letter to the White House on April 2, 2021.
Noah K. Murray/AP

But reinstating the SALT deduction would mean a painful cut to federal revenues — and would cost about half the annual amount Biden wants to raise with a hike in corporate tax rates.

In the tax and infrastructure package Biden introduced this week, the SALT cap remained firmly in place.

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Erin Mosley

Erin Mosley writes for the Hollywood section of Newzinto.