Gov. Andrew Cuomo will meet with President Donald Trump Tuesday to discuss the impact of the cap on state and local tax deductions — a provision in the 2017 federal tax law that Cuomo argues has led to a $2.3 billion reduction in the state's personal income tax receipts.
Cuomo announced the meeting with Trump during a press conference in Albany Monday. The meeting, which will be held at the White House, is scheduled for 2 p.m. Tuesday.
The $10,000 cap on state and local tax deductions has been the target of much criticism from Cuomo. Before the tax law was signed by Trump in December 2017, there was no limit on deducting state and local taxes. Placing a cap on these deductions provided a method for funding key components of the tax law, including income tax reductions and a lower corporate tax rate.
Cuomo believes the federal tax law punished high-tax states that tend to be more Democratic. He claimed the measure created a better tax structure in traditional Republican states.
"There is no more vital long-term issue for the state from a financial point of view than SALT," Cuomo said.
Cuomo revealed that he requested the meeting last week. The White House responded and the meeting was scheduled for Tuesday.
Trump has expressed interest in changes to the cap on state and local tax deductions. Last week, he told reporters at the White House that he is "open" to altering the cap.
However, Senate Republicans aren't supportive of changing the limits imposed on state and local tax deductions. A spokesman for Senate Finance Committee Chairman Charles Grassley said last week that the issue wouldn't be revisited.
Any changes to the cap would be difficult to achieve without opening up the rest of the tax law and making other adjustments. That's unlikely to happen now that Democrats control the House of Representatives. At the time of the tax law's adoption, Republicans were in the majority.
Despite the long odds, Cuomo plans to take his message to Trump. He also hopes to meet with House Speaker Nancy Pelosi in the coming weeks.
The limit on state and local tax deductions highlights another sore spot for Cuomo: New York's status as a donor state. A report authored by state Comptroller Tom DiNapoli found New York sent $24.1 billion more in tax payments than it received in federal funding.
Cuomo also noted that nine other states pay more in federal taxes than they receive in funding from Washington.
"How do you possibly justify that in terms of equity, fairness, justice on any level?" Cuomo said. "How is this fair?"
The last Cuomo-Trump meeting occurred in November. The governor met with the president to discuss the Gateway Tunnel project.