Tax Reform Bill an Affront to Local Control

WASHINGTON — November 2, 2017 — Today, leadership in the House of Representatives coalition released details on its long-awaited tax reform plan. As proposed, the bill introduces a new structure of income tax brackets, a lower corporate tax rate, doubles the standard deduction and eliminates most deductions, including the deductibility of state and local income and sales taxes. In response to today’s announcement, National League of Cities (NLC) President Matt Zone, councilmember, Cleveland, released the following statement:

“We welcome efforts to simplify the federal tax code, expand beneficial tax credits, and lower tax rates for middle class and low income Americans. But, as city leaders, we see this bill as yet another attempt to limit local control and pass the cost of action in Washington onto city halls throughout the nation.

“Hundreds of local and state governments levy income and sales taxes to pay for community development, schools and public safety under the premise that their residents will not face double taxation from the federal government. Today’s legislation nullifies this 104-year-old relationship and forces local and state leaders to choose between double taxing residents or cutting vital services.

“Congress’ decisions to budge on the state and local tax (SALT) deduction and expand tax credits prove that Washington is hearing our concerns loud and clear, but capping property tax deductions and eliminating the deductibility of local income and sales taxes indicates a lack of commitment toward supporting strong healthy communities outside the beltway. We will continue to fight against proposals that eliminate or reduce any part of the state and local tax deduction, and work to ensure that tax reform doesn’t come at the cost of local control.”

The National League of Cities (NLC) is a founding member of Americans Against Double Taxation, a coalition of advocacy groups dedicated to preserving the state and local tax (SALT) deduction. To learn more about NLC’s efforts relating to SALT, visit www.nlc.org/SALT.