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Cuomo urges Trump to rethink tax cap

WASHINGTON — New York Gov. Andrew Cuomo visited the White House on Tuesday to urge President Donald Trump to rethink a provision in the 2017 tax overhaul that Cuomo says is prompting a sharp decline in state revenues.

The Democratic governor met with the Republican president to discuss the $10,000 cap on the federal deduction for state and local taxes, or SALT.

Cuomo said the cap is prompting wealthy residents to flee New York and contributing to a recent drop of more than $2 billion in tax receipts.

Trump has praised the tax changes but said recently he has heard it’s causing some problems. Residents in high-tax states such as New York, New Jersey and California could see substantial increases in their federal tax bills this year because of the deduction cap.

Democratic control of the U.S. House increases the likelihood that the cap could be repealed, Cuomo said. After returning to New York following the meeting, Cuomo said Trump “suggested he was open to a change.”

“Because he understands: You hurt New York, you hurt California, you’re hurting the economic engines of this nation,” Cuomo said.

A White House official said the meeting demonstrated Trump’s willingness to meet regularly with the nation’s governors.

Under Cuomo’s leadership, New York banned horizontal drilling and fracking statewide in 2015.

Prospects for new tax legislation that would expand or remove the $10,000 cap are weak, given the Republican majority in the Senate and concern over increasing the deficit.

Michael Zona, a spokesman for Republicans on the Senate Finance Committee, said the committee won’t be revisiting the SALT deduction changes under Republican Sen. Chuck Grassley’s leadership.

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