WASHINGTON — President Donald Trump again indicated this week that he might be open to revisiting the new limit on state and local tax deductions that hits many middle-income residents hard in California and other high-tax, Democratic states.
Even so, don’t count on any changes soon to the Republican tax law that went into effect last year.
Legislative and political realities mean the $10,000 cap is unlikely to be scrapped or increased until after the 2020 elections at the earliest.
Although opposition to the cap is widely believed to have helped defeat Republican House members in California, New York and New Jersey last November, a key Senate Republican is adamantly opposed to a change. And increasing or eliminating the cap probably wouldn’t help get those seats back.
New York Gov. Andrew Cuomo, a Democrat and leader of the fight against the cap, this month called the new tax policy “an economic civil war that helps red states at the expense of blue states.”
Cuomo met with Trump at the White House Tuesday to discuss the matter.
“I told the president myself today: SALT repeal is hurting us. And if you hurt New York, you’re harming the economic engine of the nation,” Cuomo tweeted afterward.
He said that Trump indicated he was open to making changes, similar to something the president had said last week during a meeting with newspaper reporters.
Judd Deere, deputy White House press secretary, said Trump listened to Cuomo’s concerns.
“The president reiterated the negative impact that high taxes in states like New York have on hardworking families and job creators,” Deere said.
Related Posts:We truly are under attack. We need user support now more than ever! For as little as $10, you can support the IWB directly – and it only takes a minute. Thank you. 149 views