A bipartisan group of county leaders from around the state yesterday joined with Congressman Tom Souzzi (D-Long Island, Queens) and the New York State Association of Counties (NYSAC) to call for an end to the cap on the deductibility of state and local taxes known as SALT.
Recently, NYSAC sent a letter to the New York Congressional Delegation encouraging them to insist on a full repeal of the limitation on the State and Local Tax (SALT) deduction set in 2017.
“Many people think that the cap on state and local tax deductions only affects the wealthy and that’s just not true, over 3 million New Yorkers benefit from SALT deductibility and they’re counting on that tax relief,” said Marcus Molinaro, NYSCEA President, and Dutchess County Executive. “Middle-class New Yorkers are subject to an unprecedented double-taxation, the repeal of SALT deductibility is a devastating blow to the future of our state.”
“Our effort to restore the SALT deduction is gaining momentum. Together, Democrats and Republicans alike, we will advocate for the restoration of the SALT deduction and highlight the middle-class families who have been unfairly hurt by the cap,” said Rep. Tom Souzzi, SALT Caucus Co-Chair. “The cap on the SALT deduction has been a body blow to New York and middle-class families throughout the country. At the end of the day, we must fix this injustice.”
According to data from Congressman Suouzzi’s office, over 3 million New Yorkers file for SALT deductions worth more than $73 million. A county-by-county breakdown of New Yorkers affected by the cap on SALT deductibility is available here.
“The uncapped SALT deduction was the compromise established a century and a half ago to create fairness between high and low-cost states. Unfortunately, that fairness was largely repealed in 2017. We strongly endorse congressional efforts to restore the balance and fairness of the tax code,” said Stephen J. Acquario, NYSAC Executive Director.
Acquario noted that the SALT deduction cap also falls disproportionately on a handful of states, requiring them to pay for the lion’s share of the 2017 tax cuts for corporations and individuals nationwide. Compounding the damage of the SALT cap is that funding formulas to support federally mandated programs like education, public health, and safety, maintaining critical infrastructure, implementing and monitoring environmental and labor laws are often based on the overall wealth of individual states.
The New York State Association of Counties is a bipartisan municipal association serving all the counties of New York State, including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate, serve and advocate for member counties and the elected and appointed county officials who serve the public. For more information, visit www.nysac.org