S.A.L.T. Deduction Sought

New York taxpayers, among the most overburdened in the nation, were hit hard in the pocketbook when the federal government capped their deductions for state and local taxes.

Known as SALT, the deduction allowed property owners to avoid paying federal income tax on money used to pay state and local taxes, an irony referred to as “double taxation.” The deduction was capped at $10,000 in 2017 under the so-called “Tax Cuts and Jobs Act,” angering taxpayers on Long Island who pay enormous property, sales and other taxes.

Congressman Nick LaLota, elected in November, set out to reinstate the SALT deductions with a bill of his own called the SALT Fairness and Deficit Reduction Act, which would effectively bring the deduction to pre-2017 levels, while at the same time reducing the federal deficit.

“The cap on the SALT deduction has caused significant hardship for Long Islanders and in a time of such economic uncertainty, working families need support,” LaLola said in introducing his bill, which is also supported by Congressman Andrew Garbarino. “I am doing my part to make Long Island more affordable by seeing to it that New Yorkers get more of their SALT deduction back,” he said, adding, “These taxes inflict a double penalty and unfairly punish middle- and working-class families.”

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According to LaLota, “New York State has the dubious distinction of having the highest combined property, sales, and income taxes. While many New Yorkers are fleeing to low-tax states like Florida, the rest of us continue to plead with our representatives in Albany to provide us tax relief.”

“We hate to be taxed twice,” said Brookhaven Supervisor Edward Romaine. “What we pay in property taxes, we should be allowed to deduct from our overall income tax. This is really hurting residents and it’s hurting the value of their real estate.”

LaLota’s bill would raise and extend the SALT deduction to $60K for single filers and $120K for joint filers beginning in 2023 and lasting until December 31st, 2032, also indexed to inflation.

“Additionally, we must take definitive action to address our deficit,” LaLota continued. “As a member of the bipartisan SALT Caucus, I am proud to introduce my common sense legislation, which responsibly provides tax relief for middle-class families while cutting costs down the road. I look forward to working across the aisle to make life more affordable on Long Island.”