Senate Majority Leader Chuck Schumer signaled Tuesday at the Democratic National Convention (DNC) that he plans to eliminate the cap on state and local tax (SALT) deductions, a policy change that would benefit high-income residents in blue states.
Schumer vowed to make sure the SALT cap does not extend past its 2025 expiration date, asserting, “We Democrats, as long as I’m leader, when state and local deductibility expires, it will be gone.”
The $10,000 cap on SALT deductions — introduced by Republicans in the 2017 Tax Cuts and Jobs Act — has disproportionately affected taxpayers in states like New York, New Jersey, and California. Residents in these states face some of the highest local taxes in the country, making the cap a significant financial burden for wealthier filers. Removing the cap has become a priority for blue-state Democrats who argue that it unfairly targets their constituents.
Schumer focused on Long Island in his remarks, highlighting its importance as a swing region in the upcoming election. The SALT cap is a major issue in the area, where many voters are grappling with increased tax burdens. With several key House seats up for grabs, Schumer’s promise to lift the cap could be a deciding factor for voters.
Vice President Kamala Harris’ campaign has indicated support for lifting the SALT cap, aligning with Schumer’s stance. The issue is expected to play a significant role as Democrats position themselves ahead of the 2024 elections.
