Ocasio-Cortez says she disagrees with holding up infrastructure over SALT

Rep. Alexandria Ocasio-Cortez (D-N.Y.) said Thursday that she disagrees with Democratic lawmakers who are demanding that infrastructure legislation include a repeal of the cap on the state and local tax (SALT) deduction.

“I don’t think that we should be holding the infrastructure package hostage for a 100-percent full repeal on SALT, especially in the case of a full repeal,” Ocasio-Cortez told reporters. “Personally, I can’t stress how much that I believe that is a giveaway to the rich.”

The prominent progressive lawmaker’s comments come amid a growing push from lawmakers in high-tax states such as New York, New Jersey and California, to include repeal of the $10,000 cap of the SALT deduction in forthcoming legislation based on President Biden’s infrastructure proposal.

The cap was put in place by former President Trump’s 2017 tax law.

Ocasio-Cortez was one of only two House Democrats from New York who didn’t sign on to a letter this week that threatened opposition to tax legislation that didn’t include SALT deduction cap repeal.

The lawmakers calling for repeal of the cap argue that more than just wealthy people are impacted by the $10,000 limit, since their districts have high costs of living.

Ocasio-Cortez said she thinks there’s room to discuss making changes to the SALT deduction cap, but opposes full repeal of the limitation.

“There’s a conversation to be had, I think, about the cap itself, and at what level it’s appropriate, and where we can help families that are really deeply impacted,” she said.

“On the other end of it, I don’t believe that a full repeal is just,” she added.