Chuck Schumer Pledges To Cut Taxes for the Wealthy

Democratic Senate Majority Leader Chuck Schumer said Tuesday at the Democratic National Convention (DNC) that he intends to do his part to help wealthy filers living in blue states pay less in federal taxes.

Schumer told reporters that he won’t allow the state and local tax (SALT) deduction cap to extend beyond its 2025 expiration date so long as he remains the leader of the Democratic caucus, according to The Hill. The SALT deduction allows taxpayers to deduct some of what they pay in state and local taxes from what they owe the federal government, meaning that it is especially impactful in states with higher taxes, which tend to be blue states.

“We Democrats, as long as I’m leader, when state and local deductibility expires, it will be gone,” Schumer told reporters, per the Hill.

Former President Donald Trump and fellow Republicans were able to cap SALT deductions at $10,000 in the 2017 Tax Cuts and Jobs Act, which expires in 2025, according to The Hill. That particular provision allowed for the federal government to capture revenues that were lost by other changes to the tax system inside the Trump-era bill, such as a reduction of the corporate tax rate from 28% to 21%.

SALT deductions could be an important political factor in Long Island, New York, come November’s elections, given that it is home to swing districts that could determine the balance of power in the House, according to The Hill. Schumer specifically mentioned Long Island in his Tuesday remarks to reporters about the future of the SALT deduction.

Vice President Kamala Harris’ campaign has stated that she will not raise taxes on people making less than $400,000 annually if elected, and her campaign has also said that she favors raising the corporate tax rate back up to 28%. If she were to align with Schumer on the issue of SALT deductions, she would be effectively endorsing a walkback of two of the major elements of the Trump tax cuts that many point to as factors in the solid economic performance that followed.

Schumer’s office did not respond immediately to a request for comment.