Yellen Pledges to Work With Congress on Ways to Ease SALT Cap

  • Secretary says she wants to find ‘fair’ solution for the limit
  • Some Democrats are seeking repeal of $10,000 limitation

U.S. Treasury Secretary Janet Yellen pledged to work with Congress to ease the $10,000 cap on state and local tax deductions that’s been a key area of focus for New York and New Jersey lawmakers in recent years.

Yellen noted that the limitation on state and local tax, or SALT, write-offs in President Donald Trump’s 2017 tax law caused “disparate treatment” across taxpayers. Representatives from high-tax states have said that the restrictions on the tax break have caused their constituents to pay more in taxes.

“There are lots of options that have been presented, and I would work with you to try to insure the inequities that this caused are remedied in a fair and responsible way,” Yellen said in response to a question from Representative Josh Gottheimer, a New Jersey Democrat, during a House Financial Services Committee hearing on Tuesday.

Laura Davison | Bloomberg

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