Restoring Tax Fairness for States and Localities Act
Floor Speech
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Mr. ZELDIN. Madam Speaker, I rise in opposition to this bill.
First off, I do want to thank my colleague from Long Island, Mr. Suozzi. Mr. Suozzi and I have engaged in many conversations about this important issue, and I am sure that that will continue after today's debate.
I would like to clear up a few things about this legislation before us today to cut through some of what has been debated.
This bill permanently hikes taxes on individuals and small businesses to 39.6 percent for those currently in the 37 percent tax bracket--and for many in the 35 percent tax bracket as well--in exchange for a very temporary change of the SALT deduction only until 2021. So the SALT deduction is going to change very temporarily, but permanently we are going to be increasing taxes on individuals and small businesses.
We have to understand that 90 percent of U.S. businesses are passthroughs. They don't pay the corporate tax rate. They pay under the individual tax rate. Almost 100 percent of all passthrough businesses have less than 100 employees. We are increasing taxes permanently on all these small businesses in exchange for that short-term change.
I support multiple active bills that would change the State and local tax deduction without raising any taxes on individuals and small businesses. It is important to remember that the only SALT deduction legislation that will ever provide relief is legislation that can be signed into law, and this bill which permanently raises taxes on individuals and small businesses is not it.
In my district, from Main Street to wineries on the North Fork, this is bad news for small businesses up and down Long Island. I am focused on providing true tax relief for all hardworking Long Islanders.
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Mr. ZELDIN. It is unfortunate that, at the end of the day, when the dust has settled, they will continue to be the victims of out-of-State and out-of-touch congressional leadership putting politics over commonsense, realistic solutions.
My colleagues know I am eager to work with them to fix this legislation, so we can actually get this across the finish line and signed into law to provide true tax relief for hardworking Americans. But, unfortunately, that very temporary change to SALT in exchange for that permanent tax increase for individuals and small businesses is why I can't support this bill in its current form.
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Mr. ZELDIN. Madam Speaker, I think it is important to reiterate the fact that this bill is just a very temporary change to the SALT deduction until 2021 in exchange for a permanent increase to taxes on individuals in small businesses.
While we are having this debate, I think it is also really important to point out that the reason our State and local tax deduction was as high as it was is because our State and local taxes are as high as they are.
As we take this opportunity on this floor, let's send a message to Mayor de Blasio in New York City, and Governors and State legislators in Albany, New Jersey, and California, that all levels of government have a role to play in tax relief. That is why our State and local tax deduction was as high as it was.
To deliver for my constituents on the east end of Long Island, for people in our entire State, and for Governor Cuomo and the Democrats running Albany right now watching this, do your part. My people in my district are desperate for relief, and Congress shouldn't try to bail you out time and time again.
We will stand here and fight for you. That is why I support multiple bills that will make a change to the State and local tax deduction. But ironically, this is a bill that makes it worse through a temporary change for the SALT deduction in exchange from a permanent tax increase. So now, they are getting screwed both ways.
I am a little different from some of my colleagues. I had some opposition to the bill in 2017, and I am opposed to this bill as well.
For those Democratic politicians who are in New York City and Albany and putting the screws to my constituents because they only know how to raise taxes and they don't know how to spend wisely, start doing your part because that is why our SALT deduction was as high as it was for so long.
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