Cuomo to meet with Trump over SALT deduction cap

New York Gov. Andrew Cuomo (D) said Monday that he is planning to meet with President TrumpDonald John TrumpClinton and Ocasio-Cortez joke about Kushner's alleged use of WhatsApp Missouri Gov. declares state of emergency amid severe flooding Swalwell on Hicks testimony: 'She's going to have to tell us who she lied for' in Trump admin MORE on Tuesday afternoon to discuss a provision in Republicans' 2017 tax-cut law, arguing that the provision is harmful to the state.

Cuomo and other governors in high-tax states have been highly critical of the tax law's $10,000 cap on the state and local tax (SALT) deduction.

"There is no more vital long-term issue for the state from a financial point of view than SALT," Cuomo said at a news conference Monday. "What [the cap] does, is it has created two different tax structures in this country. And it has created a preferential tax structure in Republican states."

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The meeting comes after Cuomo earlier this month said that personal income tax receipts declined in the state in December and January, and he attributed that decline to the cap on the SALT deduction.

It also comes after President Trump last week told a group of reporters that he is open to revisiting the cap on the deduction. However, a spokesman for Senate Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyOvernight Health Care: Senators seek CBO input on preventing surprise medical bills | Oversight panel seeks OxyContin documents | Pharmacy middlemen to testify on prices | Watchdog warns air ambulances can put patients at 'financial risk' Drug prices are a matter of life and death Senate panel to hear from pharmacy middlemen on drug prices MORE (R-Iowa) said that the panel wouldn't revisit the deduction cap this year, indicating that changes to the limit on the deduction are highly unlikely to be enacted in the next two years.

Republicans capped the SALT deduction in their 2017 law at $10,000, arguing that doing so will stop the federal tax code from subsidizing higher state taxes. The cap was also designed as a way to raise revenue to offset the cost of tax cuts elsewhere in the legislation.

But the cap has been strongly opposed by lawmakers on both sides of the aisle from states such as New York, New Jersey and California, who are worried that the cap will hurt their constituents.

Sen. Bob MenendezRobert (Bob) MenendezThe Hill's 12:30 Report: Manafort sentenced to total of 7.5 years in prison Acting Defense chief calls Graham an 'ally' after tense exchange William Barr is right man for the times MORE (D-N.J.) and Rep. Bill PascrellWilliam (Bill) James PascrellOn The Money: Liberal groups pressure Dems over Trump's tax returns | Top Trump economist says tax cuts powering economy | Trump Jr. slams Theresa May over Brexit delay | Watchdog warns of 'rosy' assumptions in Trump budget Liberal groups step up pressure on Dems to request Trump's tax returns Lawmakers contemplate a tough political sell: Raising their pay MORE (D-N.J.) on Monday introduced a bill to restore the full state and local tax (SALT) deduction. The bill would also raise the top individual income tax rate from 37 percent to 39.6 percent — which was the top rate before the 2017 tax law was enacted.

"Allowing property taxes to be fully deducted has been a bedrock principle of our tax code and is commonsense tax policy that rewards states that invest in things like education, public safety, infrastructure and economic opportunity for all,” Menendez said in a statement.

The legislation is co-sponsored by Rep. Chris SmithChristopher (Chris) Henry SmithThe 31 Trump districts that will determine the next House majority Tax Foundation: Bill to restore full SALT deduction would benefit high earners Trump should push to end persecution of Chinese Christians as part of trade negotiations MORE (R-N.J.) — one of a small number of House Republicans who voted against the tax bill — and a number of Democrats from high-tax states, including Senate Minority Leader Chuck SchumerCharles (Chuck) Ellis Schumer4 in 5 Americans say they support net neutrality: poll GOP senator: Trump's criticism of McCain 'deplorable' Schumer to introduce bill naming Senate office building after McCain amid Trump uproar MORE (D-N.Y.) and Sens. Cory BookerCory Anthony BookerBannon says an O'Rourke-Harris ticket poses the greatest threat to Trump in 2020 Jared Kushner's brother made last-minute donation to Beto O'Rourke Senate campaign Biden advisers mull launch naming Abrams as running mate: report MORE (D-N.J.) and Kirsten GillibrandKirsten Elizabeth GillibrandOn The Money: Trump rolls dice on uncertain economy | 737 crisis tests Boeing's clout in Washington | Watchdog group pushes 2020 candidates for 10 years of tax returns Watchdog group calls on 2020 candidates to release 10 years of tax returns Poll: Gillibrand, de Blasio have favorable ratings under 30 percent among New Yorkers MORE (D-N.Y.), who are both running for president.

Updated at 5:26 p.m.