On Tuesday, Representative Thomas Suozzi (D-New York) followed up on prior warnings that he and a group of blue state Democrats would not support any reconciliation package that fails to restore the full deduction for state and local taxes (SALT) eliminated by the 2017 GOP tax bill. Representative Suozzi, who serves on the House Ways and Means Committee stated in an interview, “no SALT, no deal…I’m pushing for full repeal.” The Chairman of the House Ways and Means Committee, Representative Richie Neal (D-Massachusetts), is a supporter of restoring the SALT deduction and the provision is expected to be included in the Committee’s markup next week. Despite also having support from Democrat leaders such as Speaker Nancy Pelosi (D-San Francisco) and Senate Majority Leader Chuck Schumer (D-New York), progressive Democrats have balked at repealing the current SALT limit because most of the benefit would go to taxpayers earning $100,000 or more annually.
