November 1, 2017

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Save SALTD: Support Public Education

Tomorrow, the House is expected to unveil the details of the anticipated tax reform package. As mentioned previously in the blog (and in an AASA press release), it is likely the proposal will include the elimination of the state and local tax deduction (SALT-D). Last week, AASAs joined 4 other national organizations in a joint statement expressing our continued opposition to any elimination of SALT-D. 

AASA is opposed to the elimination of SALT-D, and it is our single biggest item of engagement in the overall tax reform package. 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 and reduced the pressure tax payers feel/face when it comes to paying state and local taxes, which represent the lion’s share of public education funding. 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. 

What can you do? Make sure your delegation understands what SALT-D means to your community. Here is a pretty comprehensive set of resources for you to draw on:

AASA Talking Points (from the call to action)  

  • 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.
  • 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.  
  • 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. 
  • 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.

AASA Memo: Education and Tax Reform  

  • Over the summer, I worked with a colleague form AFT to better understand the myriad ways that tax reform--SALT-D and other areas--could impact schools. That learning/research is summarized in this memo.

Americans Against Double Taxation: This is the coalition we are active in. They have rich resources

  • Calculator: How would the elimination of SALT-D impact the average homeowner in YOUR zip code and zip codes in your school district? THIS calculator will tell you. 
  • Congressional District Impact: What does it mean for tax payers in your Congressional district? This report has the numbers 

 

 

 

 

 


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