Congress and the Trump Administration are considering the elimination of the deduction for state and local taxes (SALT). If repealed, almost 30 percent of taxpayers in every state and in all income brackets would be affected.  Eliminating the deduction would result in state and local government tax increases and would also disrupt the housing market, particularly for middle income home ownership.

Since the adoption of federal income tax in 1913, there has been respect for the independence of state and local government tax structures. State and local governments rely on the stability of their tax structures to provide essential public services.

Because the elimination of state and local tax deductions would affect every region of the country and every income group, ICMA, along with the Government Finance Officers Association, National Governors Association, United States Conference of Mayors, Council of State Governments, National Conference of State Legislatures, National League of Cities, National Association of Counties, and National Association of State Budget Officers have produced The Impact of Eliminating the State and Local Tax Deduction. It includes tables that show the SALT deduction by state and Congressional district as well as the effects it would have on individuals by adjusted gross income.