U.S. Rep. Tom Suozzi (D-Glen Cove) told reporters Monday he expects some kind of agreement this week on the Democrats’ social spending package, including the state and local tax deduction, known as SALT.
Suozzi is using what he believes is more leverage as he tries to restore the full SALT deduction as part of the overall package. He has been trying to institute a change since at least 2019. Two years ago, Suozzi’s bill to restore the SALT deduction passed in the House but not the Senate.
“If you want to change the tax code I’ll support that,” he said Monday. “But you’re not getting my vote, or others’ with me, unless it includes a fix of SALT.”
Under legislation signed by then President Donald Trump, the federal tax deduction for state and local taxes is capped at $10,000. This has the effect of raising federal taxes for homeowners in areas with high property taxes like the North Shore.
The former Nassau County executive said New York is negatively affected by the deduction because it is the largest net donor to the federal government and residents are taxed on income used to pay local and state taxes.
Issues associated with SALT have caused families, which are potential revenue drivers, to leave New York for other states such as Florida.
“I believe as more and more censuses come out, the problem of people leaving will bear out,” said Suozzi.
Suozzi also said that the spending package can be considered by the Rules Committee as early as Tuesday. He told reporters any changes regarding SALT are likely to be added to the bill in the committee.
Supporters of the deduction come from both sides of the aisle, Suozzi said Monday. However, he said Republicans who vote against the bill that come from districts in need of SALT relief do so at their own political peril.
He said he believes changes to SALT will eventually be included.
“I feel good that this will be included in the final deal,” said Suozzi. “My whole political capital has been expanded on this, I’m way out in front of it. No SALT. No Deal.”