Former President Trump and his Republican allies in Congress inserted a provision in the 2017 tax reform bill that capped so-called SALT deductions at $10,000, which hit residents of expensive blue states such as New York, New Jersey and California with higher state and local taxes especially hard.
But the provision also raised a significant revenue to offset the cost of Trump’s other proposals, such as cutting the corporate tax rate to 21 percent.
The issue of SALT deduction caps is especially potent on Long Island, Schumer said, referencing the key swing area in New York that could help Democrats regain control of the House of Representatives in November.
“We Democrats, as long as I’m leader, when state and local deductibility expires, it will be gone,” he declared.
Schumer also said he plans to end other Trump-era tax cuts and argued that the reduction of the corporate tax rate went beyond what even business groups expected.
“To deal with our fiscal problems, we want to undo some of the Trump tax cuts, which went to the very wealthy,” Schumer said. “The amazing thing, the BRT, the Business Roundtable, asked to reduce the taxes to 25 percent in those 2017 negotiations.
“Even the business leaders I speak to expect it will go up,” he added.
The Hill’s Alexander Bolton has more here.
