AOC at Odds with New York Congressional Democrat Caucus Over Repeal of SALT Cap Deductions

Rep. Alexandria Ocasio-Cortez just released a multi-part legislative blueprint to build a more equitable and sustainable nation, what’s she’s calling “A Just Society.” CQ-Roll Call, Inc via Getty Images
CQ-Roll Call, Inc via Getty Images

Rep. Alexandria Ocasio-Cortez (D-NY) said Thursday she disagrees with the group of New York Democrats who sent a letter to House leadership saying they may “vote to oppose” any tax legislation without a full repeal of State and Local Tax (SALT) Cap deductions.

When speaking to a reporter, Ocasio-Cortez said, “Frankly, I disagree with that,” referring to the 17 New York Democrats looking to holding  the infrastructure package hostage if there is not a full repeal of the SALT cap deductions included. She said:

I don’t think we should be holding the infrastructure package hostage for a 100% repeal of SALT, especially in the case of a full repeal. Personally, I can’t stress how much that I believe that is a giveaway to the rich. I think that it’s one thing to talk about the actual cap because there are absolutely communities that are really feeling this in New York City, California, etc.

The Democrat added that “when we actually look at the breakdown of SALT, the vast majority of the benefit of a full repeal with no cap — you know, just abolishing this cap — is just unequivocally a benefit of the richest people.”

Ocasio-Cortez said there should be some type of conversation to be had about the SALT Cap deduction mainly benefiting the rich.

When talking about the level itself, she said, “at what level it’s appropriate, and where we can help families that are really deeply impacted — because there is a disproportionate impact in blue states and coastal states,” she added, “at the other end of it, I don’t believe that a full repeal is just.”

She claimed when talking about a full repeal of SALT Cap deductions, “I think it’s a giveaway to the rich, and I think it’s a gift to billionaires.”

Therefore, Ocasio-Cortez said, “I do not believe in holding the entire infrastructure package hostage for a full appeal and abolishing the cap. I think we can have a conversation about the policy, but it’s a bit of an extreme position, to be frank.”

On Monday, Breitbart News reported 17 out of the 19 Democrats from New York, led by Rep. Jerry Nadler (D-NY) and Rep. Thomas Suozzi (D-NY), signed the letter, telling the House leadership they could oppose any piece of tax legislation if there is not a repeal of the State and Local Tax (SALT) limitations added in, saying they may vote to oppose “any tax legislation that does not include a full repeal of the SALT limitations.”

The only two Democrats missing from the group were Ocasio-Cortez and Rep. Kathleen Rice (D-NY). In 2019, Ocasio-Cortez voted against repealing the SALT cap. Rice, who signed similar legislation and was a co-sponsor of the bill, did not sign the current letter.

New York Democrat Sen. Kirsten Gillibrand (D-NY) told a reporter from Punchbowl News, when asked about the letter Monday, “I fully support SALT restoration.” During a follow-up question about whether she should vote against a bill without it, Gillibrand responded, “We’ll see what happens.”

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