130 Bipartisan Mayors Issue Letter to Congress to Maintain SALT Deduction and Municipal Bond Interest Deduction
Millions of Families Rely on SALT Deduction; Elimination Could Cause Home Values to Fall in Cities Across the Country
WASHINGTON, DC — Ahead of expected tax policy negotiations, 130 bipartisan mayors led by United States Conference of Mayors (USCM) President and New Orleans Mayor Mitch Landrieu today issued a letter to Congress urging members to maintain the deductibility of state and local taxes (SALT) and the tax exemption for municipal bond interest.
Mayors across the country know the devastating impact eliminating these components of the tax code would have for millions of American taxpayers. Since the establishment of the federal income tax in 1913, taxpayers at every income level have been able to claim the SALT deduction and municipal bonds have remained tax-exempt. A recent report from the National Realtors Association found that eliminating SALT could cause home values to fall by an average of more than 10 percent in the near term, with potential for a more severe drop in areas with higher property taxes or state income taxes. Both SALT and municipal bonds support critical investments in infrastructure; public safety; housing, schools and hospitals, and encourage economic growth.
“By all accounts the elimination of SALT would disproportionately affect our cities, leaving large numbers of middle class Americans paying more in taxes on dollars they will never see in the first place. This is effectively double taxation,” the Mayors said. “SALT lowers taxable income, and puts more money in the hands of American families. Eliminating the deduction will hit middle and upper-middle class workers the hardest, furthering the financial instability of many families.”
See full text of the letter here.
Mayors are available for interviews and broadcast appearances. If you’re interested in speaking with Mayor Landrieu or USCM leadership about this issue, please contact Rae Robinson Trotman at email@example.com or 703-869-5448.