Letter to the Hon. Orrin Hatch, the Hon. Ron Wyden, and the Hon. Kevin Brady, and the Hon. Richard Neal - Save State and Local Tax Deduction

Letter

Dear Conferees:

There is a bipartisan path forward to provide critical tax cuts to our constituents and businesses of all sizes. It worked decades ago for President Reagan and Speaker O'Neill, when a plan for a simpler tax system was signed into law with support from both parties. We, the undersigned Members of Congress, write to express our support for the enclosed Gottheimer-Lance Tax Cut Plan, which preserves the state and local tax (SALT) deduction in its entirety, along with several other important provisions like lowering the corporate and pass-through rates and retaining the medical expense and student loan interest deduction, while substantially reducing the impact of tax reform on the deficit.

States that will be hit hardest by the proposed House and Senate plans send disproportionately more revenue to the Federal Treasury than they receive in return. We cannot accept a tax plan that raises taxes on our constituents and businesses. Many of our colleagues have called for tax reform not to pick winners and losers among businesses and industries. We agree and believe that sentiment should be extended not to pick winner and loser states. As written, both bills clearly favor and hurt certain states.

The Gottheimer-Lance Tax Cut Plan addresses these concerns by retaining the current SALT and mortgage interest deductions in their entirety, while protecting tax cuts for businesses of all sizes and key development mechanisms like private activity bonds.

Enclosed is a copy of the bipartisan tax cut plan we support. We appreciate your review and consideration of our proposal.

Sincerely,