The majority of the California Congressional Caucus sent a letter Thursday to President Joe Biden to urge the President to repeal the State and Local Tax (SALT) Cap limitations President Donald Trump signed into law.
The group of Democrats wants there to be a repeal of the limitations in the infrastructure package. Forty-one of the California Democrat House members signed onto the letter, led by Reps. Mike Levin, Josh Harder, and Katie Porter. House Speaker Nancy Pelosi (D-CA) has received a copy of the letter but did not sign onto the letter, according to the Hill.
“We urge you to address the $10,000 cap President Trump placed on the State and Local Tax (SALT) deduction, which has hurt our constituents and people across the country since long before the COVID-19 pandemic began,” the group of California Democrats wrote in a letter. “The removal of this arbitrary cap is necessary and prudent as we seek remedies to help the American people during this time of recovery.”
The Hill wrote the letter from the California Democrats falls short of threatening the entire infrastructure package, as the New York Democrats did if there was no full repeal of the SALT Cap limitations.
The group of lawmakers continued to say the “enactment of the SALT cap specifically targeted states and localities that have chosen to provide strong taxpayer support for critical government services such as education, health care, transit, and social services.”
“Your American Jobs Plan, and the associated Made in America Tax Plan, are a key part of ensuring our country emerges stronger from this pandemic,” the lawmakers from California wrote, adding, “alongside policies that create good jobs and ensure corporations pay their share, we must restore fairness to the tax code for the middle class by restoring the SALT deduction.”
Pelosi told the Hill “that she hopes that the SALT deduction cap can be addressed in an infrastructure bill.”
When Biden released his original infrastructure plan, the initial proposal would be paid by increasing taxes through the corporations and did not include SALT Cap deductions.
This comes as a majority of New York Congressional Democrats also sent a letter to Nancy Pelosi and Majority Leader Steny Hoyer (D-MD), saying they may vote to oppose “any tax legislation that does not include a full repeal of the SALT limitations.” Their letter was signed by Seventeen Democrats, led by Rep. Jerry Nadler (D-NY) and Rep. Thomas Suozzi (D-NY).