House Chief Tax Writer to Include SALT Deduction in Legislation

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House Minority Leader Nancy Pelosi said abolishing SALT deduction is an “an insidious effort to raise taxes on middle-class families.”  On the other hand, Senate Minority Leader Chuck Schumer called it a “gut-punch” to middle-class families.

The governors of California and New York warned that taxpayers in their states will face huge tax increases under the GOP plan.

Gov. Brown & Gov. Cuomo reject repeal of SALT deduction

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In a joint conference call, California Governor Jerry Brown and New York Governor Andrew Cuomo rejected the GOP tax plan. They also accused the Trump administration of using the tax code to punish Democratic states.

According to Brown, the GOP is attempting to transfer wealth from middle-class families to corporations. He said, “This is an income transfer from people…to the impersonal entity called corporations.” He added, “This is an attack on California, New York, and New Jersey…that would not vote for Trump. It’s a gross manipulation or our tax code.

On the other hand, New York Governor Andrew Cuomo said repealing SALT deduction means burden to middle-income New Yorkers. Their taxes will increase by an average of $5,300 average. He said, “Maybe it’s a confusing topic.  People don’t understand it today. But I guarantee; they will understand it a year from today when they walk into an election booth.”