New Schumer Study: Plan to Eliminate State & Local Tax Deduction Slams Middle Class StateN Islanders With Millions More to I.R.S.

NEW SCHUMER STUDY: PLAN TO ELIMINATE STATE & LOCAL TAX DEDUCTION SLAMS MIDDLE CLASS STATEN ISLANDERS WITH MILLIONS MORE TO I.R.S.

Standing with Castleton Corners homeowner, Schumer vows to protect the provision that allows the a typical Staten Islander more than $1000 on their federal taxes

Schumer calls on NY Congressional Delegation, Governor, and Business Community to fight proposals to eliminate this critical tax relief

U.S. Senator Charles E. Schumer today visited the home of Chet Cutick in Castleton Corners to launch a new push to save New Yorkers the ability to deduct their state and local taxes from their federal taxes. Schumer will also release a new study showing that approximately 64,000 Staten Island residents use this provision to deduct an estimated $761 million from their federal taxes annually.

"New Yorkers have been taking this deduction since 1913, since the beginning of the income tax and we've built our entire state and local tax codes under the assumption that this deduction does and will continue to exist," Schumer said. "The deduction puts thousands of dollars back into the bank accounts hard working Staten Island families instead of into the hands of the IRS, and I'm going to fight with everything I've got on the Senate Finance Committee to make sure it stays that way."

Currently, New Yorkers can deduct their state and local taxes, including local income taxes and property taxes, from their federal taxes. However, it has been widely reported that the Administration is considering a plan to eliminate the state and local tax deduction- a move that would cost New Yorkers $37 billion in lost deductions. Schumer, who started work last week as the newest member of the powerful Senate Finance Committee which oversees federal taxation, today called on all levels of New York government, including the Governor and the rest of the NY Congressional Delegation, as well as the business community to join in his fight to save this critical tax relief.

Schumer's new study showed that of the estimated 64,000 Staten Island taxpayers who currently deduct $761 million and could pay dearly if this provision is eliminated, 45,000 have incomes of less than $100,000. The following is a full breakdown of the impacted Staten Island households:

Click here to view chart

Schumer highlighted the following example to illustrate the impact on an average Staten Island family: A married couple with a combined income between $55,000 to $65,000 will owe roughly $2,300 in state taxes and $1,500 in city taxes. If we assume that they pay roughly $4000 in property taxes, they would currently deduct a total of $7,800 paid in state and local taxes from their federal taxes. This deduction saves this family roughly $1160. Schumer said that this savings quickly goes up for those families in higher income brackets, often totaling several thousands less in federal taxes.

Schumer was joined today by Castleton Corners homeowner Chet Cutick. Last year, Mr. Cutick, who has an annual income of $75,000, paid $5944 in state and city taxes and $1448 in property taxes. Mr. Cutick estimates that without the deduction, he would owe the federal government $1840, however because of the deductions he is expecting a $4 refund. This is a savings of $1844.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR40096.SI12805.html