Lowey Hosts Roundtable on GOP Tax Plan’s Impact on New Yorkers
WHITE PLAINS, NY – Congresswoman Nita Lowey (D-NY17/Rockland-Westchester), Ranking Member on the House Appropriations Committee, was joined today by White Plains Mayor Thomas Roach at a roundtable discussion with tax experts and middle-income taxpayers on the Republican tax plan released last week.
“With this plan, Republican leaders have put a target on the backs of hardworking New Yorkers,” said Congresswoman Lowey. “We are already a high-taxed donor state that sends much more revenue to the federal government than we get back. Middle class and working families in New York cannot afford another tax increase, but that’s exactly what they will get if the state and local tax deduction is eliminated.”
Every year, 3.3 million New York taxpayers, who are already among the highest taxed in the country, rely heavily on the state and local tax (SALT) deduction to reduce their tax burden. The SALT deduction allows taxpayers to deduct state and local taxes from their federal taxable income. Under the Republican tax proposal, which eliminates the state and local tax deduction to help offset the cost of proposed tax cuts, the federal income tax liability for New York taxpayers could increase by $17.5 billion. Eliminating the state and local tax deduction would increase the average annual tax bill for New Yorkers by nearly $5,300.
Among the New York counties that would be hardest hit by the elimination of the SALT deduction are Westchester and Rockland. Both counties are represented by Congresswoman Lowey in New York’s 17th Congressional District, where the average state and local tax deduction was $26,243 in 2015.
“I want to thank Congresswoman Lowey for her advocacy in Congress on this important issue that affects every resident of the City of White Plains as well as City government,” said Mayor Roach. “It’s absolutely critical that these deductions remain in place. Providing our taxpayers with the ability to deduct state and local taxes ensures that they are not taxed twice on the same income. Additionally, the property tax deduction, along with the deduction on mortgage interest, provides a strong incentive for homeownership. Likewise, the sales tax deduction incentivizes spending and encourages economic growth. These are key factors in the economic sustainability of every municipality in New York State.”
“The Trump-GOP tax plan is an enormous giveaway to the wealthiest Americans and corporations that will leave middle-class families holding the bag,” said Seth Hanlon, Senior Fellow at the Center for American Progress. “The Trump-GOP plan would increase deficits by $2.4 trillion over the next decade to pay for huge new tax breaks for well-connected corporations and the ultra-wealthy, while at the same time increasing taxes on millions of families. In fact, by a decade from now, 47 million families would be paying higher taxes. And the colossal cost of this tax plan would put Medicare, Medicaid, and Social Security at greater risk.”
Joining Congresswoman Lowey and Mayor Roach at the roundtable were Seth Hanlon, Senior Fellow at the Center for American Progress; Jorge Fernandez, resident of Peekskill and member of Communication Workers of America; Thomas Grieco, resident of Valley Cottage and member of Communication Workers of America; Patricia Puleo, recently retired president of the Yonkers Federation of Teachers and resident of Thornwood; Koshy Chacko, owner of Fair Deal Café in White Plains; Nancy Kessler, owner of Memoirs Plus in Mount Kisco; and Bernadette Schopfer, Director of Taxation at Maier Markey & Justic in White Plains.
Congresswoman Lowey spoke in an interview with WNYC’s Brian Lehrer last week about the disproportionate harm of the Republican proposal to taxpayers in New York. She urges Republicans to work with Democrats to find a bipartisan approach to give working families relief and sustain our economy.