Pelosi Backs Move to Lift SALT Cap in Biden’s Economic Program
House Speaker Nancy Pelosi backed a move to put a repeal of the $10,000 cap on state and local tax deductions in the infrastructure and social-spending program that Democrats are hoping to pass as soon as this summer.
“Hopefully we can get it into the bill. I never give up hope for something like that,” Pelosi said at a press briefing Thursday.
She called the deduction limit enacted by President Donald Trump “devastating” to taxpayers in her home state of California, and said she is sympathetic to the move by a group of lawmakers to remove the cap in any tax legislation that is part of President Joe Biden’s long-term economic plan.
The $10,000 limitation on state and local tax, or SALT, deductions is a prime focus for several Democrats in Congress, including New Jersey Representatives Bill Pascrell, Josh Gottheimer, Mikie Sherrill and New York Representative Tom Suozzi. All four lawmakers -- who are sufficient in number to block the bill if all Republicans stay united against it -- have said they won’t back any other tax-code changes to fund an infrastructure bill unless it addresses the SALT cap.
Other key Democrats, including Senate Majority Leader Chuck Schumer and Treasury Secretary Janet Yellen, have also voiced support for addressing the SALT cap.