Walker Votes Against Legislation that Would Force NC Taxpayers to Pay for Millionaire Homes in Other States
WASHINGTON, D.C. - U.S. Representative Mark Walker (R-N.C) today released the following statement after voting against H.R. 5377, the Restoring Tax Fairness for States and Localities Act:
“I will not allow hardworking North Carolinians to subsidize mansions for millionaires in states like New York and California. Even worse – and just the day after attempting to overturn the votes of 63 million Americans – the House majority's legislation will shrink the tax base, meaning lower- and middle-income families will likely take on a larger share of taxes to offset cuts for the wealthy. This week has made crystal clear how out of touch House Democrats really are.”
The Tax Cuts and Jobs Act (TCJA) reduced the top individual income tax rate to 37% from 39.6% through the 2025 tax year and capped the itemized deduction for state and local taxes (SALT) to a maximum of $10,000. The Restoring Tax Fairness for State and Localities Act raises the state and local tax (SALT) deduction to $20,000 for 2019 and then completely removes the cap for 2020 and 2021.
To offset the cost of raising this deduction, the top marginal rate, this legislation raises the top marginal rate back to 39.6% and lowers the bracket threshold.
According to the Tax Foundation, the repeal of the 2017 SALT cap deductions would reduce federal revenue by hundreds of millions of dollars while primarily benefiting the top 20% of income earners and the largest tax cut benefiting the top 1% of earners.
America’s manufacturers have also expressed opposition to this legislation. With many manufacturers being taxed at individual rates, this legislation would raise taxes on America’s job creators and threatens to stifle the robust job growth in the manufacturing industry and beyond.
Walker was a champion of the 2017 TCJA, which lowered individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% so Americans keep more of the money they earned throughout their lives. While simplifying the tax code, this legislation supported American families, streamlined higher education benefits, and gave American workers the largest reduction in the U.S. corporate tax rate in our nation’s history.
The full text of the legislation can be found here.