At the Democratic National Convention (DNC) on Tuesday, Senate Majority Leader Chuck Schumer committed to removing the cap on state and local tax (SALT) deductions, a move that could offer substantial tax relief to wealthy residents in high-tax blue states. Schumer emphasized that the SALT cap will be eliminated once it expires in 2025, stating, “We Democrats, as long as I’m leader, when state and local deductibility expires, it will be gone.”
The SALT deduction allows taxpayers to write off certain state and local taxes against their federal tax obligations. The current $10,000 cap — introduced as part of the 2017 Tax Cuts and Jobs Act — has disproportionately affected high-income earners in states like New York, New Jersey, and California, which have higher local tax rates. The cap’s removal has become a rallying point for blue-state Democrats seeking to protect their constituents from what they view as unfair taxation.
Schumer singled out Long Island in his remarks, noting its significance in the upcoming elections as a region with several key swing districts. With the SALT cap being a major issue for local voters, Schumer’s promise could be a crucial factor in determining those races.
Vice President Kamala Harris’ campaign has echoed Schumer’s stance on the SALT deduction, while also proposing other tax changes, such as increasing the corporate tax rate. Together, these proposals represent a direct challenge to the core elements of Trump-era tax reforms.
