Democratic senators look to repeal SALT deduction with special vote
Pass the SALT – or at least the repeal of the IRS regulation that is designed to keep people from exceeding the $10,000 limit on state and local tax deductions, say Senate Democrats.
Led by Minority Leader Sen. Chuck Schumer (D-NY), Democrats are looking to force a vote to overturn the regulation to cap on the state and local tax (SALT) deduction that impacted millions of homeowners.
"On Wednesday, Senate Democrats will force a vote to nullify the IRS’s horrible rule and put power back in the hands of homeowners," Sen. Schumer said in a statement, "America’s homeowners shouldn’t be forced to bear the brunt of the GOP’s political games.”
Senate Minority Leader Chuck Schumer of N.Y., speaks with reporters after a meeting with President Donald Trump at the White House, Wednesday, Oct. 16, 2019, in Washington. (AP Photo/Alex Brandon)
Homeowners in states with high property taxes – such as New York, California, New Jersey, Massachusetts, Connecticut and Maryland -- took a hit when the tax overhaul bill passed in 2017.
Republicans voted for the SALT deduction cap to raise revenue that could be used to finance other tax cuts and because they thought that the deduction was subsidizing higher state taxes.
Earlier this month, a federal judge in New York ruled that the 2017 federal tax overhaul’s cap on state and local tax deductions was not an “unconstitutional assault” on the sovereignty of high-tax states.
Democrats will try to use the Congressional Review Act, which allows Congress to to nullify recently finalized guidance or rules from federal agencies. A vote can come about with a resolution signed by 30 senators.
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But to pass the repeal, Democrats will need 50 votes and will need Republican support.