NEW YORK (CBSNewYork) – Momentum is building to repeal the SALT cap.
That’s the cap on deducting state and local taxes from income tax.READ MORE: CDC Announces New Mask Guidance For People Fully Vaccinated Against COVID-19
Thursday, New York lawmakers on both sides of the aisle stood together to launch an effort to reverse the tax change.
As CBS2’s Carolyn Gusoff reports, on April 15th, taxes are on the mind of Long Islanders.
“Horrible. We live in a condo and we pay over $25,000,” one person said.
Making it even harder is the 2017 so-called SALT cap – the $10,000 cap on deducting state and local taxes.
“Most of us on Long Island pay more than $10,000 in real estate taxes, so it is a universal hurt,” one person said.
“It’s making it harder and harder to live in Nassau County,” said another.
Opponents say it’s now or never to resurrect the fight. Long Island Rep. Tom Suozzi is leading a growing bipartisan caucus and recruiting 17 New York Democratic members of Congress to refuse to support any tax legislation without the repeal.READ MORE: Israel Attacks Gaza Strip As Violence Intensifies
As for the president’s sweeping infrastructure plan? Suozzi says no SALT, no deal.
“This is bad for New York. A cap on the state and local tax deduction is a body blow to New Yorkers. We need to get it back. It’s existential for us,” Suozzi said.
County executives representing the hard-hit suburbs are also banding together to fight, calling it double taxation: Owing taxes on money spent on taxes.
“The largest federal tax increase, essentially, on middle class homeowners in history,” said Suffolk County Executive Steve Bellone.
But across the country, many see SALT deductions as a tax break for the rich, and the 2017 change as closing a loophole, crediting the increase in the standard deduction for offsetting the pain.
This bipartisan caucus is pushing back against that notion.
“It’s about helping the middle class. My district, teachers, firemen, cops, small business owners. The average real property tax bill on my block on Long Island is $15,000 a year,” said Rep. Andrew Garbarino.
Suozzi goal is a deal by July 4. The White House has said it is happy to hear advocate’s ideas if they want to propose a way to pay for it.MORE NEWS: Bronx Man Takes It Upon Himself To Clean Up NYC Park, But City Says Not So Fast
So far, there’s no response from the two Democrats from New York who did not join colleagues to call for the SALT cap repeal – Kathleen Rice and Alexandria Ocasio-Cortez did not sign the congressional letter.