Will County Gazette

Will County board member Mike Fricilone (R-Homer Glen) wants the federal government to understand the value of allowing citizens to deduct state and local taxes from their federal tax bills.

Fricilone testified recently on Capitol Hill to defend the state and local tax (SALT) federal tax deduction, which is estimated to benefit 125,000 families in Will County. Fricilone addressed legislators on behalf of the National Association of Counties (NAC).

“We need to keep this deduction in place,” Fricilone told the Will County Gazette. “The whole idea behind it is you're not paying taxes on top of taxes.”

Fricilone said the safeguard against double taxation dates to 1913 and argued that the federal government should protect it. Fricilone said some responses to his stance reveal a general uncertainty.

“A lot of them aren't really sure how this is going to affect things,” Fricilone said. “There were a lot of notes taken.”

Fricilone’s own projection is that repealing the SALT deduction would hurt the housing market, especially in places where real estate taxes are already high, such as many Illinois communities.

“People keep saying they want to simplify tax returns,” Fricilone said, warning against making arbitrary changes that might not work out the way their planners intend.

Besides taking away an incentive for home buying, Fricilone said disallowing state and local tax deductions can increase the odds of someone not being able to itemize deductions on his tax return.

In a recorded NAC statement, Fricilone expounded on some of the other potential effects of a move to stop allowing the deduction of state and local taxes on a federal return.

“This could put downward pressure on counties to adjust our taxes and impact the vital services we provide, including 911 emergency services, road and bridge repairs and economic development,” Fricilone said. “We commend Congress on the efforts to enact comprehensive tax reform, and we know it’s hard, but we urge lawmakers not to balance this effort on the backs of state and local governments and to maintain this deduction.”