Reps. Lofgren, Min, and Thompson Lead Letter To Remove Cap on SALT Deductions and Lower Taxes for California Households

WASHINGTON, DC – Today, Representatives Zoe Lofgren (CA-18), Dave Min (CA-47), and Mike Thompson (CA-04) led 18 of their California colleagues in a letter to Speaker Mike Johnson and Chairman Jason Smith (MO-08) demanding tax relief for Californians. The lawmakers called for no cap on State and Local Tax (SALT) deductions in the GOP’s taxation bill. The letter was first reported by POLITICO. 

The lawmakers wrote, “As the state with the largest economy in the country and the fourth largest economy in the world, California is by far the most generous of the thirteen donor states, meaning its residents paid far more in taxes to the federal government than it received in support. According to a 2022 Rockefeller Institute of Government study, California residents paid $83 billion more in federal taxes than they received in support. This means that for every dollar our constituents pay to the federal government, they get less than 88 cents in return. Our constituents pay more than their fair share of taxes to our nation and deserve tax relief in these difficult economic times.”

The lawmakers continued, writing, “We respectfully request that you honor your commitment to states’ rights and tax relief by not imposing another painful and massive tax on California families and small businesses by creating a new SALT deduction cap.”

The SALT deduction was created at the same time as the federal income tax in 1861 and was the first and only deduction allowed at that time. The SALT deduction has always been seen as the most important tax deduction, and is rooted in the principles of preventing federal overreach into states’ rights and preventing double taxation on hardworking Americans. The SALT dedication is as essential today as it was when it was first introduced in the 19th century.

The full letter is available here. Representatives Gil Cisneros (CA-31), Lou Correa (CA-46), Jim Costa (CA-21), Laura Friedman (CA-30), Jimmy Gomez (CA-34), Jared Huffman (CA-2), Ted Lieu (CA-36), Jimmy Panetta (CA-19), Linda Sánchez (CA-38), Norma Torres (CA-35), Derek Tran (CA-45), George Whitesides (CA-27), Julia Brownley (CA-26), Salud Carbajal (CA-24), Judy Chu (CA-28), Mark DeSaulnier (CA-10), Sydney Kamlager-Dove (CA-37), and Mark Takano (CA-41), co-signed the letter.

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