Schumer and Gillibrand Launch New Push to Permanently Restore New York State's Full Salt Deduction; with Average Upstate NY Deduction of $13k+, Senators Introduces Legislation to Allow Upstate Taxpayers to Fully Deduct State & Local Taxes on Federal Income Returns
Press Release
Senators Have Been Pushing To Restore SALT Deduction Since It Was Uprooted From Middle Class Communities Via The Trump Tax Bill; The Avg SALT Deduction Across Upstate New York Was Over $13K Across More Than 1.2M Households
Senators: The Money Robbed From Upstate Homeowners Via The SALT Deduction Cap Must Be Restored; The Cap On The SALT Deduction Has Been A Body Blow For New York Families
Today, U.S Senate Majority Leader Charles Schumer and U.S. Senator Kirsten Gillibrand introduced legislation in the new Congress to eliminate the $10,000 cap on the State and Local Tax (SALT) deduction starting in 2021. The proposal would allow taxpayers to fully deduct their state and local taxes on their federal income returns. In 2017, the deduction was capped at $10,000 and resulted in a tax increase for many middle-class families.
"When it comes to SALT, New York families needed and deserved this money before the coronavirus took hold, the stakes are even higher now because the cap is costing this community tens-of-thousands of dollars they could be using amid the crisis," said Senator Schumer. "That is why I am proud to be leading this legislation to restore our full SALT deduction. Double taxing hardworking homeowners is plainly unfair; We need to bring our federal dollars back home to the to cushion the blow this virus--and this harmful SALT cap--has dealt so many homeowners and families locally."
"I am proud to join my colleagues to introduce legislation to repeal the cap on the State and Local Tax deduction, a cynical policy passed by Republicans as a way to repay wealthy donors and lobbyists with big corporate tax cuts," said Senator Gillibrand. "The reinstating of the SALT Deduction will ensure that New York families have more money in their pockets, get much-needed tax relief and will once again be treated fairly."
Schumer and Gillibrand pointed to the following reasons for why the SALT deduction is unfair to New Yorkers:
New Yorkers already subsidize other states by paying $36-45 billion more in taxes than we receive back from the federal government;
The repeal of the SALT deduction results in double taxation by imposing federal taxes on the income used to pay state and local taxes;
The elimination of the deduction drives wealthier people to other states and leaves middle- and lower-income taxpayers holding the bag to pay for school, police and other essential state and local tax burdens.
The below breakdown, based on 2017 data, shows just how critical the full deduction was to New York homeowners.
Congressional District
Percentage of Taxpayers Using SALT deduction
Average SALT deduction
16
41%
$28,984
17
48%
$28,602
18
43%
$20,682
19
33%
$14,320
20
34%
$16,446
21
23%
$11,477
22
23%
$12,275
23
22%
$12,787
24
30%
$13,505
25
33%
$14,334
26
24%
$12,208
27
33%
$14,096
NEW YORK
County
Average SALT Deduction
Number of Households Claiming SALT
Percent of Middle Income SALT Beneficiaries
Westchester
$36,263
232,500
70%
Rockland
$22,249
67,400
80%
Putnam
$19,105
25,900
82%
Saratoga
$19,050
45,340
85%
Albany
$17,002
51,740
86%
Columbia
$16,727
9,680
87%
Thompkins
$16,224
13,080
83%
Orange
$15,755
72,650
87%
Dutchess
$15,662
59,660
86%
Ontario
$15,604
17,160
87%
Monroe
$14,549
121,830
88%
Onondaga
$14,460
72,190
88%
Madison
$14,333
8,830
89%
Ulster
$14,080
30,830
90%
Steuben
$13,842
9,370
88%
Warren
$13,801
9,700
89%
Erie
$13,656
130,650
88%
Schenectady
$13,042
26,290
91%
Essex
$12,733
4,050
90%
Broome
$12,666
20,410
89%
Sullivan
$12,563
10,390
92%
Rensselaer
$12,440
25,570
91%
Chemung
$12,188
8,710
89%
Yates
$12,148
2,300
90%
Oneida
$11,893
23,700
91%
Tioga
$11,893
5,450
92%
Livingston
$11,780
7,810
93%
Cortland
$11,689
4,780
93%
Greene
$11,583
6,620
92%
Otsego
$11,382
5,730
89%
Niagara
$11,294
26,850
93%
Cattaraugus
$11,246
5,700
92%
Oswego
$11,171
12,600
92%
Allegany
$11,169
3,230
94%
Clinton
$11,131
8,250
92%
Schuyler
$11,029
1,840
92%
Delaware
$10,981
4,160
93%
Cayuga
$10,979
8,610
93%
Schoharie
$10,977
3,580
94%
Wayne
$10,935
11,870
94%
Herkimer
$10,829
5,100
93%
Jefferson
$10,824
8,940
92%
St. Lawrence
$10,803
8,270
92%
Seneca
$10,774
3,250
93%
Chautauqua
$10,725
10,100
92%
Chenango
$10,522
3,930
93%
Franklin
$10,438
3,290
92%
Montgomery
$10,332
4,730
94%
Fulton
$10,283
5,220
93%
Hamilton
$10,183
650
92%
Genesee
$10,156
6,840
94%
Washington
$9,973
6,720
95%
Wyoming
$9,871
4,060
94%
Orleans
$9,589
3,790
95%
Lewis
$9,218
2,260
93%
*Middle-income is defined for these purposes as households making less than $200,000 per year.
Under the pre-Trump tax code, taxpayers who itemized deductions on their federal income tax returns could deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. State and local income and real estate taxes had made up approximately sixty percent of local and state tax deductions while sales tax and personal property taxes made up the remainder. According to the Tax Policy Center, approximately one-third of tax filers had itemized deductions on their federal income tax returns.
Source