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 TrumpWarren defends, Buttigieg attacks in debate that shrank the field Five takeaways from the Democratic debate in Ohio Democrats debate in Ohio: Who came out on top? 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 GrassleyTrump's latest plan to boost ethanol miffs both corn groups and the fossil fuel industry Syria furor underscores Trump's isolation GOP braces for impeachment brawl 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) MenendezHouse to vote on resolution condemning Trump's Syria pullback Rand Paul calls for probe of Democrats over Ukraine letter Senators ask Treasury to probe Brazilian meatpacker with major US footprint MORE (D-N.J.) and Rep. Bill PascrellWilliam (Bill) James PascrellLawmakers focus their ire on NBA, not China Hillary Clinton swipes at NBA over Hong Kong controversy On The Money: Judge tosses Trump lawsuit over NY tax return subpoena | US, Japan sign trade deals | Trump faces narrowing window for trade deals | NBA sparks anger with apology to China 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 SmithThis week: Congress returns to chaotic Washington Nancy Pelosi is ready for this fight House approves Democrat-backed bill ending mandatory arbitration 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 SchumerTrump defends 'crime buster' Giuliani amid reported probe Louisiana voters head to the polls in governor's race as Trump urges GOP support Trump urges Louisiana voters to back GOP in governor's race then 'enjoy the game' MORE (D-N.Y.) and Sens. Cory BookerCory Anthony BookerWarren defends, Buttigieg attacks in debate that shrank the field Warren leads in speaking time during debate Democrats wrangle over whether to break up Big Tech in debate first MORE (D-N.J.) and Kirsten GillibrandKirsten GillibrandLobbying world 2020 Presidential Candidates Krystal Ball: Yang campaign a 'triumph of substance over the theatre' MORE (D-N.Y.), who are both running for president.

Updated at 5:26 p.m.