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 TrumpGillibrand backs federal classification of third gender: report Former Carter pollster, Bannon ally Patrick Caddell dies at 68 Heather Nauert withdraws her name from consideration for UN Ambassador job 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 GrassleyHigh stakes as Trump, Dems open drug price talks Senate approves border bill that prevents shutdown Grassley raises voice after McConnell interrupts Senate speech 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) MenendezWilliam Barr is right man for the times This week: Trump delivers State of the Union amid wall fight BuzzFeed story has more to say about media than the president MORE (D-N.J.) and Rep. Bill PascrellWilliam (Bill) James PascrellCuomo to meet with Trump over SALT deduction cap Dems build case for obtaining Trump's tax returns On The Money: Lawmakers closing in on border deal | Dems build case for Trump tax returns | Trump, Xi won't meet before trade deadline | Waters in talks with Mnuchin for testimony 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 SmithDems escalate gun fight a year after Parkland House panel advances bill to expand background checks for gun sales Cuomo to meet with Trump over SALT deduction cap 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 SchumerNational emergency declaration — a legal fight Trump is likely to win House Judiciary Dems seek answers over Trump's national emergency declaration Mandatory E-Verify: The other border wall MORE (D-N.Y.) and Sens. Cory BookerCory Anthony BookerSanders expected to announce exploratory committee next week Bill Maher to Dems: ‘Let’s not eat our own’ in 2020 Dems ready aggressive response to Trump emergency order, as GOP splinters MORE (D-N.J.) and Kirsten GillibrandKirsten Elizabeth GillibrandGillibrand backs federal classification of third gender: report Sanders expected to announce exploratory committee next week Newsom endorses Kamala Harris for president MORE (D-N.Y.), who are both running for president.

Updated at 5:26 p.m.