Democratic presidential candidate on Friday called for repealing the GOP taw law’s cap on the state and local tax (SALT) deduction as part of his plan to modernize the U.S. education system.
The Washington governor’s proposal includes repealing the SALT deduction cap as a way to invest in educators and cites an estimate from the National Education Association that says the deduction limits put at risk as much as $150 billion in revenue that supports K-12 public education.
“These impacts are yet one more example of how the Trump tax cuts for corporations and the wealthy have continued the persistent efforts of right-wing and corporate special interests to undermine access to a quality public education, and Governor Inslee will bring this to an end,” the plan states.
GOP lawmakers capped the SALT deduction at $10,000 in their 2017 law because doing so would raise revenue to help offset the cost of tax cuts elsewhere in the legislation. Republicans argue that limiting the deduction helps prevent the federal tax code from subsidizing higher state taxes.
But Democrats, as well as some Republicans who live in high-tax states, have been critical of the SALT deduction cap, arguing it hurts their residents and the ability of their communities to provide services.
The Democratic-led House Ways and Means Committee held hearings last month on the SALT deduction cap, but Democrats face challenges to undoing the cap since a repeal would primarily benefit high-income taxpayers.
Inslee has joined a coalition of governors who are pushing to restore the full SALT deduction.
Several other Democratic presidential candidates, such as Sens. (D-N.J.), (D-N.Y.) and (D-Calif.), have cosponsored legislation that would restore the full SALT deduction and raise the top individual tax rate from 37 percent to 39.6 percent. However, repealing the SALT deduction hasn’t been a prominent topic in their campaigns.