Stop the Attempt to Repeal the State and Local Tax Deductions for Income and Property
Philip Weiden | October 27, 2017
Congress is now actively engaged in modifying the tax code and Realtors and homeowners in New York State stand to lose big time if Congress votes to repeal the state and local income and property tax deduction.
This deduction has been a part of the tax code for decades and helps New Yorkers to participate in the “American Dream” of home ownership. For middle class homeowners their home is their nest egg.
Congress wants to abolish the SALT (state and local taxes) deduction as it is estimated to be worth $1.3 trillion over 10 years, which is a significant sum of money even for the federal budget. However New York is a high-cost state where people earn higher incomes and suffer from high utility costs, high property taxes, and high income taxes. The cost of living in New York is also much higher than in other states. The current SALT deduction makes New York a lot more affordable than it otherwise would be.
The housing market has recovered to a large extent (although homes have not reached their pre-2007 prices), but home values would plummet if the SALT deduction were repealed. Some members of Congress have floated a proposal to limit the deduction for high-income earners; the issue with that idea is that once capped, future Congresses are likely to come back again and again and redefine the definition of high-income earners. When government enacts a new fee or tax they see it as an easy target for future increases.
There are several things you can do. First and foremost, respond to the Call for Action sent out by NAR, NYSAR and HGAR that lets your Congressional representative know you are opposed to this.
Also, share the consumer portion of the Call for Action with your family and friends. The battle to save the SALT deduction is just beginning. If enough people in high cost states such as New York, California, New Jersey and Connecticut speak out we can save SALT.