Please ensure Javascript is enabled for purposes of website accessibility
Will Biden Give Californians Some Tax Relief?
gvw_ap_news
By Associated Press
Published 3 years ago on
April 5, 2021

Share

Seven Democratic governors called on President Joe Biden to lift the $10,000 cap on state and local tax deductions Friday that was a part of former President Donald Trump’s massive 2017 tax law, arguing the “assault” disproportionately targeted Democratic-run states and ultimately increased taxes on families.

The letter comes a little more than a week after U.S. Treasury Secretary Janet Yellen agreed to work with Congress on a way to remedy the “inequities” the cap has caused.

The governors of Connecticut, New Jersey, California, Hawaii, Illinois, New York, and Oregon spelled out in a two-page letter how their constituents are paying billions of dollars annually in additional taxes to the federal government. It’s roughly $12 billion more in California and in New York; approximately $3 billion in New Jersey; $370 million in Hawaii, and $1.3 billion in Connecticut, which pays more into the federal government while receiving back less per capita than any other state, according to the letter.

“This assault disproportionately targeted Democratic-run states, increasing taxes on hardworking families,” the letter reads. “This was unacceptable then, and is simply untenable given the dire economic conditions caused by the pandemic.”

Yellen: Deductions Cap Is ‘Double Taxation’

The governors said they were heartened to hear Yellen’s willingness to work with Congress to someone ease the impact of the $10,000 cap and urged Biden’s administration and Congress “to continue these efforts to relieve this immense financial burden on our residents and eliminate the SALT cap entirely.”

Yellen gave the governors some hope earlier this month when she responded to a question from New Jersey U.S. Rep. Josh S. Gottheimer, a Democrat, during a March 23 hearing before the House Financial Services Committee. Gottheimer asked if the Biden administration would support eliminating the SALT cap and reinstating the popular tax deductions for state and local taxes, calling the current situation a “misguided policy of double taxation.”

Yellen said she agreed the cap has led to “disparate treatment,” but did not commit to eliminating it entirely.

“There are a lot of options that have been presented,” she said, noting that in addition to a bipartisan proposal to remove the cap, Biden has discussed possibly capping itemized deductions at 28%.

“The caps could be increased,” she said during the hearing. “ So I think we need to study just what impact it’s had and (I) look forward to working with you to find a fair way to address it.”

DON'T MISS

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

DON'T MISS

Fresno State Announces 2024 Undergraduate Deans’ Medalists

DON'T MISS

Duane Eddy, Twangy Guitar Hero of Early Rock, Dead at Age 86

DON'T MISS

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

DON'T MISS

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

DON'T MISS

Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools

DON'T MISS

House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War

DON'T MISS

Trump Awarded 36 Million More Trump Media Shares Worth $1.8 Billion

DON'T MISS

Fresno Trustees Discuss Interim Superintendent Decision. When Will They Decide?

DON'T MISS

Why Wheels on $10M Worth of Fresno Buses Don’t Go Round and Round

UP NEXT

What Marijuana Reclassification Means for the United States

UP NEXT

Rep. Marjorie Taylor Greene Vows to Force a Vote on Ousting House Speaker Mike Johnson

UP NEXT

Protesters Clash at UCLA After Police Arrest 300 Pro-Palestinian Demonstrators in New York City

UP NEXT

Dems: We Will Save GOP Speaker Johnson’s Job if Republicans Try to Oust Him

UP NEXT

Campaign to Build New California City Submits Signatures to Get on November Ballot

UP NEXT

Hush Money Trial Enters 3rd Week, Begins With Gag Order Ruling and $9K Fine for Trump

UP NEXT

EPA Bans Consumer Use of a Toxic Chemical Widely Used as a Paint Stripper but Known to Cause Cancer

UP NEXT

Study Says California’s 2023 Snowy Megadrought Rescue Was a Freak Event

UP NEXT

Planning for Potential Presidential Transition Underway by Biden Administration

UP NEXT

US Is Building a Pier off Gaza to Bring in Humanitarian Aid. Here’s How It Would Work.

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

1 hour ago

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

1 hour ago

Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools

1 hour ago

House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War

2 hours ago

Trump Awarded 36 Million More Trump Media Shares Worth $1.8 Billion

3 hours ago

Fresno Trustees Discuss Interim Superintendent Decision. When Will They Decide?

Local Education /

3 hours ago

Why Wheels on $10M Worth of Fresno Buses Don’t Go Round and Round

3 hours ago

Enough With the Excuses. Are You Part of the Problem With Fresno’s Public Education?

3 hours ago

New Battlegrounds Emerge in California’s Political Guerrilla War Over Housing

4 hours ago

Red Sox Notch Another Shutout in Fenway Win Over Giants

5 hours ago

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

GV Wire senior reporter David Taub talks with KMPH Fox 26 “Great Day” anchor Jim De La Vega about $3 million in trash hauling overpayments m...

14 mins ago

14 mins ago

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

32 mins ago

Fresno State Announces 2024 Undergraduate Deans’ Medalists

1 hour ago

Duane Eddy, Twangy Guitar Hero of Early Rock, Dead at Age 86

1 hour ago

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

1 hour ago

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

1 hour ago

Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools

2 hours ago

House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War

3 hours ago

Trump Awarded 36 Million More Trump Media Shares Worth $1.8 Billion

MENU

CONNECT WITH US

Search

Send this to a friend