SALT
Dear Neighbor,
I am writing to update you on the latest SALT deduction negotiations in Washington and to ask for your input on the Senate's most recent framework.
The current $10,000 cap on the State and Local Tax (SALT) deduction, imposed by my party in 2017, is too low and unfair to Long Island's middle-class families. While Albany's one-party rule is responsible for New York's high tax burden, it's on this Congress to fix what D.C. got wrong in 2017 and what neither party has managed to correct since.
That's why, on May 22, I voted for the House-passed version of the One Big Bill, which raises the SALT deduction cap to $40,000 for households earning under $500,000. For many in our district, this would make a real difference. It's designed to fully restore the SALT deduction for households earning up to $333,000 and paying up to $20,000 in property taxes delivering the relief they've long deserved.
Unfortunately, the Senate's latest framework severely weakens that progress. It offers the same $40,000 cap but for just five years before reverting back to the inadequate $10,000 limit in years six and beyond. That's not a real fix. It's a temporary patch that delays the problem rather than solving it.
Here's the bigger picture: if the 2017 tax law expires, SALT becomes unlimited again but so do higher individual tax rates and we would lose the Alternative Minimum Tax (AMT) fix. That's a bad tradeoff. I'm confident that my party will come together to extend lower rates and keep the AMT fix and I believe there's still room to negotiate a better outcome on SALT than what the Senate has offered.
So here's my question to you:
I look forward to hearing from you.
Sincerely,
Nick LaLota
Member of Congress
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