October 9, 2017(1)

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Save SALT-D: Tax Reform Impacts Schools!

Call to Action: Save #SALT-D! (Tax Reform Impacts Schools)

 

TELL CONGRESS SALT MUST BE PRESERVED: 
NOT LIMITED, RESTRICTED OR MODIFIED IN ANY WAY

 

BACKGROUND: When it comes to tax reform, AASA is engaged in an effort to preserve the State and Local Tax Deduction (SALT-D). AASA Executive Director Daniel A. Domenech responded to the proposed elimination of SALT-D in a statement last month: "AASA is deeply opposed to the proposed elimination of the State and Local Tax Deduction (SALT-D). We believe any comprehensive tax reform legislation must preserve this deduction. As one of the six original deductions allowed under the original tax code, SALT-D has a long history and is a critical support for investments in infrastructure, public safety, homeownership and, specific to our work, our nation’s public schools. SALT-D prevents double taxation for local residents. Elimination of this deduction would increase tax rates for certain tax payers, reduce disposable income, limit ability and support for local taxes, and damage local, state and national economies." AASA is a proud member of the Americans Against Double Taxation, a coalition of state and local government organizations, service providers and other stakeholders dedicated to protecting the state and local tax deduction (SALT), a federal tax deduction claimed by 44 million American taxpayers that supports vital investments in infrastructure, public safety, home ownership and education.

CALL TO ACTION: There were multiple reports last week suggesting that a variety of alternative proposals may be on the table to restrict, limit or modify SALT rather than eliminate it entirely as the “Big Six” first proposed. Our allies in the House have confirmed these reports, and told us these talks are progressing rapidly.  

This is the first of several critical crossroads we expect to face, and we need your help to make calls to Congress immediately, urging Members to fully preserve SALT, and reject proposals that undermine this deduction which has been a central tenet of our federalism for over 100 years.  

The good news is that the talk of alternatives to eliminating SALT means our voices are being heard by Members of Congress, and they now know there is strong and widespread opposition to taking away SALT.  However, we must remain vigilant and fully engaged because so-called compromise proposals can sound reasonable, but they also can be harmful to homeowners, middle class taxpayers, state and local governments and the public services they provide, much like full repeal of SALT.  

The SALT messages we need to deliver are:  

 

  1. We stand firmly for the preservation of the full deduction for state and local taxes, and urge you speak out in favor of SALT and vote against any tax reform plan that eliminates, restricts or modifies this deduction.
  2. SALT has been a fixture of the federal tax code and our nation’s fiscal federalism for more than 100 years to guard against double taxation of households and protect the fiscal integrity of state and local governments, and it should remain in the tax code without limitation.  
  3. Any limitations, restrictions or changes to SALT would undermine these fundamental principles of our federalism and create a slippery slope that would subject SALT to continued erosion whenever Washington needs more money – at the expense of 44 million middle class households and homeowners who now claim this deduction. 
  4. The elimination of SALT is one of the largest sources of revenue in the “Big Six” tax plan, estimated at $1.3 trillion dollars taken from 44 million households.  Thus, any compromise and anything less than preserving the full deduction, is sure to cause millions of taxpayers to pay higher taxes, undermine funding for state and local government and the services they support, and possibly cause home values to decline as well.  

Targets: Calls to any Members of Congress are helpful. Please don’t be shy; more calls are better than fewer. We can’t overdo it. We need to mobilize. The phone number for the Congressional switchboard is (202) 224-3121. If you need contact information for your Congressional delegation, let us know. Thanks so much.

 


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