South OC Times

U.S. Representative Young Kim from California's 40th District addressed the House Committee on Ways and Means to discuss the need for revising the state and local tax (SALT) deduction cap. Rep. Kim, who co-chairs the bipartisan SALT Caucus, has introduced legislation aimed at repealing the SALT cap.

During her testimony, Rep. Kim expressed concerns about rising living costs and home affordability affecting her constituents in Orange, San Bernardino, and parts of Riverside County. She urged committee members to reconsider the SALT deduction cap imposed by the Tax Cuts and Jobs Act (TCJA), highlighting its impact on families filing taxes jointly due to a "marriage penalty."

"The TCJA SALT Cap also discriminated against families who filed their taxes jointly because it imposed the same $10,000 cap as individual filers," she noted.

Rep. Kim emphasized that the SALT deduction has been a fundamental aspect of tax law since 1913, designed to prevent double taxation. She argued that maintaining this cap makes home ownership unattainable for many in her district.

"Unfortunately, the SALT cap made home ownership unattainable for districts like mine," she stated.

She pointed out that housing prices have increased significantly while the SALT cap remains unchanged. Citing data from the Federal Housing Finance Agency’s national House Price Index, she mentioned a nearly 60 percent increase in single-family home selling prices from July 2019 to July 2024.

Rep. Kim stressed that addressing this issue is not politically divisive but essential for making homes affordable regardless of political affiliation.

"Fixing the SALT cap is not a red or blue state issue – it’s all about making homes affordable for my constituents no matter who they voted for," she said.

In addition to advocating changes to the SALT deduction, Rep. Kim encouraged support for Rep. LaHood’s Affordable Housing Credit Improvement Act, which aims to expand affordable housing through an enhanced Low-Income Housing Tax Credit.

Furthermore, she advised caution when considering repeals of tax credits related to energy policy under the Inflation Reduction Act: "I urge the Committee...to use a scalpel and not a sledgehammer when thinking about which tax credits to repeal."

Rep. Kim concluded by expressing her willingness to collaborate with Chairman Smith and his team on addressing these issues affecting her constituents' financial well-being.

"I look forward to continuing to work with you and your team," she added before yielding back her time at the hearing.