Maloney: SALT Deduction Repeal Devastating To New York
Source: Queens Gazette
Following the passage on October 26 of the GOP budget resolution setting the stage for the GOP Tax Plan that includes repeal of the State and Local Tax (SALT) deduction, Congress Member Carolyn B. Maloney (NY-12) released the following statement:
“Today, House Republicans took the first step toward raising taxes on millions of New York families by passing a budget that allows them to eventually eliminate the deductibility of state and local taxes. According to the Rockefeller Institute, New York sent $48 billion more in taxes to the federal government than it received back in 2015, making us the largest donor state in the nation. If the SALT deduction is eliminated, New Yorkers will be sending even more to the federal government than we get back and we will be double-taxed. That is a slap in the face and punch to the gut that we can’t allow to happen.
“The SALT deduction is the most widely used benefit in the tax code in New York and getting rid of it means New Yorkers will pay an average of $5,300 more in federal income tax. For those that live in the city, taxpayers will see an average increase of $7,100.
“If the SALT deduction is eliminated, it will create tremendous pressure on state and local governments to cut back funding for schools, infrastructure, health, local law enforcement, and first responders and that is simply unacceptable. New Yorkers take care of their own, and we’re proud of it.
“While some are proposing to cap the SALT deduction, that is still problematic because it will put a serious strain on our state’s finances.
“Given the stakes, we’re going to be doing everything we can to make it as painful as possible for Republicans in New York and similar states to vote to end the State and Local Tax Deduction.”