December

13, 2017

Dear Members of Congress:

We, the undersigned, were disappointed that you recently voted in favor of H.R. 1, which partially
eliminates the state and local tax (SALT) deduction and harms taxpayers in New York, but maintains that
same deduction for corporations. As the debate over tax reform moves through the Senate and returns
to the House of Representatives for a final vote, we strongly urge you to fight for full preservation of SALT,
and to vote no on any legislation which does not fully preserve this deduction.

SALT is vital to middle class taxpayers in New York. In 2015, more than 3,319,820 households in New York
claimed the SALT deduction, with 84.42% of those being middle-class.

Middle-class homeowners will be hit with a double whammy if SALT is cut: tax bills will go up while
property values decline. According to recent analysis of IRS data, the loss or partial elimination of SALT
would result in tax increases as high as $6,300, or more than $63,000 over 10 years, for many suburban
homeowners nationwide. Meanwhile, the National Association of Realtors and a recent analysis published
by the New York Times have found that home values could decline by as much as 10% if SALT is eliminated.
For many middle-class families in New York, their home is their largest asset and primary investment.

Cutting SALT also threatens state and local governments, and essential public services such as education,
healthcare and public safety. Here in New York, we could potentially lose 24,628 education jobs if SALT is
cut. Three major national public safety organizations representing 870,000 first responders wrote to
Congress asking you to preserve SALT and vote no on H.R. 1. The Fraternal Order of Police said that it was
very concerned that the partial or total elimination of the SALT deductions will endanger the ability of
our State and local governments to fund these agencies and recruit the men and women we need to keep
us safe.

The full or partial repeal of SALT would upset the carefully balanced fiscal federalism that has existed since
the creation of the tax code, and it will result in unprecedented double taxation on taxpayers, forcing
them to pay a federal tax on monies already paid in state and local taxes. Taxpayers throughout New York
are depending on you to ensure they dont see a tax hike. With that goal in mind, we urge you to preserve
the full deductibility of state and local taxes and oppose any legislation going forward which does not fully
restore SALT.

Thank you.

Sincerely,

New York State Association of Counties

Real Estate Board of New York
New York Building Congress
New York State Association of Chiefs of Police
The New York State Professional Firefighters Association
New York State Council of School Superintendents
The Fiscal Policy Institute
Association for a Better New York
Clifford W. Crouch, Member of NYS Assembly (122nd District)
Mayor Lovely Warren of Rochester, New York
Mayor Steve Noble of Kingston, New York

CC: U.S. Treasury Secretary Steven Mnuchin

U.S. Senate Majority Leader Mitch McConnell
U.S. Senate Minority Leader Chuck Schumer
U.S. House Speaker Paul Ryan
U.S. House Minority Leader Nancy Pelosi
U.S. House Ways and Means Committee Members
U.S. Senate Finance Committee Members
National Economic Council Chair Gary Cohn

For more information, contact media@americansagainstdoubletaxation.org.