Seventeen New York state Democratic lawmakers said Tuesday they will not support a proposed tax increase to fund President Joe Biden’s base-building plan unless it eliminates a 2017 tax reform measure that hurts certain state high-income earners.
The lawmakers urged a full repeal of the provision, which sets the state and local tax credit cap (SALT cap) for families at $10,000.
This was part of the $1.5 trillion tax reform plan signed into law by former President Trump in 2017.
“We are prepared to work with you on this critical issue, and we will not hesitate to oppose any tax bill that fails to fully restore the state and local tax credit,” the group of lawmakers led by Reps. Tom Suozzi and Jerry Nadler wrote in a letter to House Democratic leadership.
Biden’s Democrats hold the House and Senate by slim margins, which means he can barely afford to lose so many Democratic votes of support. His $2.3 trillion infrastructure plan would be financed by raising the U.S. corporate tax rate to 28 percent from the current 21 percent.
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