Local Impacts of Tax Reform

Local Impacts of Tax Reform 2017-10-16T10:03:47+00:00

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Learn about the impacts on your wallet should the state and local tax deduction be eliminated.

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What’s Impacted?

State and Local Deductibility

The Trump Administration is currently proposing to either eliminate or cap the deductibility of state and local taxes. This is a fight we have not seriously faced since the tax reform act of 1986. But there are some estimates that this deduction costs the federal government over $1 trillion over 10 years, making it a serious target in tax reform. As we did in 1986, we are launching a campaign against “double taxation” to help the White House and Congress understand what is at stake in this fight. As part of the “Big 7” State and Local Coalition, which includes the Governors and State Legislatures and Cities and Counties, we have met with many of the experts who led the double taxation fight in 1986 to help us understand how the issue played out previously, and what strategy might work best with this Congress and Administration.

In April, the Big 7 sent our tax letter to all of Congress, letting them know we intend to fight hard to defend tax policies that are truly the historical bedrock of the federal, state and local partnership.

Tax-Exempt Municipal Bonds

Over the past several years, and with leadership being provided by our Second Vice President Columbia Mayor Steve Benjamin, we have built and led a strong coalition of almost 60 organizations united to stop either the elimination or capping of tax-exempt bonds. We have educated many leaders in Congress as to what bonds do to help build the infrastructure our people and businesses depend on every day. Our top officers also discussed this priority with President Trump one month after his election, at which time the President expressed his support for municipal bonds. We have made progress in getting our message out, but we remain under serious threat in the tax reform debate as members look for offsets to pay for bracket reductions. Here is the most recent coalition letter we have sent up on bonds.

 

Recent Headlines

Bipartisan Mayors from Suburban Areas to Provide Snapshot of Damaging Impact of Salt Tax Repeal

October 13, 2017|0 Comments

Republican and Democratic Mayors United Firmly Against SALT Elimination’s Extreme Hit to Household Budgets; Will Call on Congress to Stand Against Double Taxation Press Conference Call Monday, October 16 at 12:00 pm ET Washington, DC— [...]

Mayors Urge Congress To Preserve State And Local Tax Deduction

September 27, 2017|0 Comments

Elimination Disproportionately Impacts Cities and Hits Middle Class Families the Hardest WASHINGTON, DC — In response to the Republican tax reform plan released today that included the elimination of the State and Local Tax Deduction [...]

Today: Leading Bipartisan Mayors To Visit Washington

September 26, 2017|0 Comments

U.S. Conference of Mayors President and New Orleans Mayor Mitch Landrieu Leads Delegation to Meet with Congressional Leaders and Fight to Protect Healthcare, Hurricane Relief, DACA, State and Local Tax Deductions Washington, DC— More than [...]

Mayors To Congress: Save Taxpayers From Double Taxation, Preserve State And Local Tax Deduction

September 25, 2017|0 Comments

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 [...]

U.S. Conference Of Mayors To Stress Importance Of Tax-Exempt Municipal Bonds During Infrastructure Week

May 16, 2017|0 Comments

Washington, D.C. – On the heels of President Trump reaching 100 days in office, U.S. Conference of Mayors (USCM) President Oklahoma City Mayor Mick Cornett will add his voice to the need for additional infrastructure investment [...]

Mayor Wahler Pushes Top Priorities During New Jersey Conference of Mayors

April 27, 2017|0 Comments

Piscataway Mayor Brian Wahler addressed over 150 mayors at the 54th New Jersey Conference of Mayors on Thursday, April 27 in Atlantic City, NJ.  As Chair of the Membership standing committee for the United States Conference [...]

Questions?

Larry JonesAssistant Executive Director, Taxes and Budget
Dave GattonDirector, Council on Metro Economies and the New American City