Lowey, King Introduce Bill to Restore SALT Deduction
WASHINGTON, DC – Congresswoman Nita Lowey (D-NY17/Rockland-Westchester), Ranking Member on the House Appropriations Committee, and Congressman Peter King (R-NY02/Nassau-Suffolk) today announced legislation to restore the state and local tax (SALT) deduction, which was significantly curtailed by the federal tax overhaul signed into law last month.
“Millions of taxpayers in high-taxed states like New York depend on the state and local tax deduction to help pay their expenses and care for their families,” said Congresswoman Lowey. “By effectively eliminating this deduction, the new federal tax law unfairly punishes families living in states that send more money to the federal government than we get back in federal investments. This is unacceptable, and our bill is a necessary step to providing tax relief—not more burdens—for New York families. The legislation restores the state and local income tax deduction in its entirety, setting aside partisan politics to find a real solution on tax fairness for our constituents.”
Prior to enactment of the new federal tax law, New York taxpayers who itemized could deduct their state and local property and income taxes. The SALT deduction was a major source of tax fairness for high-taxed states like New York, where 35 percent of taxpayers deduct an average of more than $22,000 every year. In Congresswoman Lowey’s district, the 17th Congressional District of New York, the rate is even higher, with 45 percent of taxpayers relying on the state and local tax deduction at an average of $26,000. The new law, however, caps the SALT deduction at $10,000, effectively raising taxes on millions of middle-class Americans who depend on the deduction.
The Securing Access to Lower Taxes by Ensuring Deductibility Act, or SALT Deductibility Act, would repeal the limit on the SALT deduction, providing tax relief for the millions of families who rely on the deduction.