For High-Octane Growth, Exchange the State and Local Tax Deductions for Lower Income Tax Rates
Our Position on Tax Reform
Eliminating the state and local tax (SALT) deduction would provide upwards of $1.5 trillion over the next decade to implement broad-based tax cuts nationally. This overhaul would spur the growth in economic output that is needed to jolt business investment, personal income growth and job growth.
In The Hill, Jonathan Williams and Joel Griffith of ALEC’s Center for State Fiscal Reform lay out our case in full.
It’s time to stop forcing citizens in fiscally responsible regions to subsidize the malfeasance of politicians thousands of miles away. Indeed, without the SALT deduction, citizens are more likely to hold their local elected officials responsible for government mismanagement. Incentivizing investments in business enterprises and technology by lowering the penalty on success produces far more growth than subsidizing state and local government spending through the SALT deduction.
And in a show of state unity, state legislators and elected county officials from across the nation are signing an open letter to Congress supporting this essential tax reform component. If you are a state legislator, please add your signature.