SALT Cap Repeal Bill Introduced in Congress
Real Estate In-Depth | January 29, 2021
WASHINGTON—U.S. Reps. Mondaire Jones (D-NY), Tom Suozzi (D-NY) and U.S. Senate Majority Leader Charles Schumer on Thursday introduced the SALT Deductibility Act that would remove the $10,000 cap on state and local tax deductions imposed in 2017 under the federal tax reform law.
The SALT Cap was highly criticized by New York politicians, as well as the New York State real estate industry, including the Hudson Gateway Association of Realtors.
“When it comes to SALT, if you think Westchester and Rockland families needed and deserved this money before the coronavirus took hold, the stakes are even higher now because the cap is costing this community tens-of-thousands of dollars they could be using amid the crisis… Double taxing hardworking homeowners is plainly unfair. We need to bring our federal dollars back home to cushion the blow of this virus—and this harmful SALT cap—has dealt to so many homeowners and families locally,” said U.S. Senate Majority Leader Charles Schumer.
The SALT Deductibility Act would remove the cap on the SALT deduction instituted in 2017 as part of then President Donald Trump’s Tax Cuts and Jobs Act and would allow New Yorkers to fully deduct their state and local taxes from their federal taxes.
“Donald Trump cut taxes for billionaires and big corporations and paid for it on the backs of hardworking families in Westchester and Rockland counties, where we pay the highest property taxes in the entire nation,” said Rep. Jones at a press conference announcing the introduction of the SALT bill. “That must change. Restoring the SALT deduction is a necessary first step to creating an equitable tax system—one where we put money back in the pockets of working people.”
Congressman Jones’ said the passage of the bill will bring needed relief to his constituents in Westchester and Rockland who pay the highest property taxes of any Congressional District in the entire nation, with Westchester ranked first and Rockland ranked second.
Others who praised the bill’s introduction were U.S, Senator Kirsten Gillibrand (D-NY), who said, “The reinstating of the SALT Deduction will ensure that New York families have more money in their pockets, get much-needed tax relief and will once again be treated fairly.”
New York State Senate Majority Leader Andrea Stewart-Cousins noted that over the last three years, “Trump’s unfair attack on Blue States has cost New Yorkers over $30 billion, while wealthy corporations saw tax breaks.”
“I want to thank US Congressman Mondaire Jones for his work, in conjunction with US Senator Chuck Schumer, to restore the State and Local Tax or ‘SALT’ deduction,” said Westchester County Executive George Latimer. “This federal tax law is not only double taxation, but it also unfairly targets communities like Westchester County–and every homeowner in this county is a victim. In Westchester, where the average home is valued at $691,392.00, our homes are our greatest asset and this cap is a hit to our wallet. We cannot stand for this—and we will not. We won’t stop fighting until we overturn the SALT deduction cap.”
In other legislative news, Spectrum News reported that two state lawmakers had introduced a bill to tax capital gains in New York as a means to increase taxes on the state’s wealthiest residents. The bill backed by Sen. Gustavo Rivera and Assemblyman Ron Kim that would tax investment income could raise an estimated $7 billion in revenue for the state.