Cities Condemn Passage of Budget Resolution and Tax Reform Amendment that Harms Local Finances and Middle Class Families
WASHINGTON — October 19, 2017 — Today, the Senate passed an amendment proposed by Senator Capito (R-W. Va.), which jeopardizes the deductibility of state and local taxes (SALT). In response to today’s announcement, NLC President Matt Zone, councilmember, Cleveland, released the following statement:
“Cities condemn the passage of the Capito amendment that threatens the state and local tax (SALT) deduction. Local leaders know that SALT prevents double taxation by allowing millions of middle class families to deduct their local property, sales and income taxes, and helps local governments raise the revenues needed to make critical investments in infrastructure, public safety and education.
“The Senate budget resolution, along with its proposed funding levels and reconciliation instructions, sends a message to cities that they are expected to continue doing more with less. Any plan that truly claims to grow the American economy must include cities. We will continue to send a strong message back to Congress and the Administration: SALT and the tax exemption on municipal bonds are nonnegotiable, and tax reform cannot come at the expense of local governments and middle class families.”
A recent piece by the Center for Budget and Policy Priorities highlights the negative impacts that elimination of the SALT deduction would have on middle class families and local credit ratings.
The National League of Cities (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.
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