Cities Concerned about Passed Congressional Budget Resolution

U.S. Capitol Building
U.S. Capitol Building

WASHINGTON —October 26, 2017 —Today, the House narrowly approved the $4 trillion fiscal year 2018 Senate Budget Resolution, which includes reconciliation instructions that removes the threat of filibuster from forthcoming tax reform legislation. While the resolution is non-binding, it contains language that further threatens the deductibility of state and local taxes and clears the way for party-line passage of tax reform. In response to the resolution, National League of Cities (NLC) President Matt Zone, councilmember, Cleveland, released the following statement:

“Today’s vote is a thinly veiled attempt to open the door for elimination of the state and local tax (SALT) deduction over bipartisan objections in Congress. We remain deeply concerned that Congress continues to pursue an ill-advised attempt to pass tax reform solely on party-line votes while passing the cost onto cities and middle class Americans.

“This budget resolution sends a message to cities that they are expected to continue doing more with less. Any budget plan that truly claims to grow the American economy must invest in cities, so we will continue to send a strong message back to Congress and the Administration: SALT and the tax exemption on municipal bonds are nonnegotiable.”

NLC is a founding member of Americans Against Double Taxation, a coalition of advocacy groups dedicated to preserving the state and local tax (SALT) deduction. To learn more about NLC’s efforts relating to SALT, visit www.nlc.org/SALT.

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The National League of Cities (NLC) is dedicated to helping city leaders build better communities. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans. www.nlc.org

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