A growing number of House Democrats are threatening to withhold support from President Biden’s recent infrastructure proposal unless he includes the repeal of state and local tax (SALT) deductions in the plan. Democrats from high-tax states continue to insist on the repeal SALT deductions, which were enacted as part of the 2017 tax law signed by President Trump to help offset the cost of some of the tax cuts in the package. On Tuesday, Representatives Thomas Suozzi (D-New York), Mike Thompson (D-St. Helena), and Jimmy Panetta (D-Carmel) issued a joint statement vowing to oppose any efforts to change the tax code to support infrastructure spending unless the SALT deduction is restored. All three representatives sit on the House Ways and Means Committee, which will have jurisdiction over any tax pay fors critical to funding a subsequent infrastructure package. Therefore, the issue could prove to be a serious stumbling block for House Democrats, who can only afford three defections with their razor-thin majority and still pass legislation on their own without any GOP support.
