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House Democrats are grappling with how to address one of their least favorite provisions in the GOP tax law: the $10,000 cap on the deduction for state and local taxes (SALT).

A House Ways and Means Committee subpanel held two hearings on Tuesday about the SALT deduction cap, during which local-government officials and House members argued that the cap hurts residents and communities in their districts.

The hearings come after committee Democrats formed a working group to discuss the issue earlier this year. And lawmakers have offered a host of bills to increase the cap or repeal it all together.
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The cap is “the wrong policy, and we need to find a workable solution,” said Ways and Means Committee Chairman Richard Neal (D-Mass.).
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Later, Rep. Don Beyer (D-Va.), who represents Washington D.C. suburbs, displayed a photo of a home in his district and a “nicer” home South Carolina that cost significantly less.

He said that depending on where people live, they can have dramatically different tax rates that have nothing to do with their “richness.”

Democratic lawmakers and local government officials also said that the cap on the SALT deduction could hurt state and local governments’ ability to offer services — such as schools and police and fire services — that benefit people across the income spectrum.

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