U.S. Rep. Tom Suozzi, D-Huntington has introduced bipartisan legislation which would provide immediate tax relief for his constituents. The bill is co-sponsored by U.S. Rep. Peter King, R-Long Island.
The legislation would eliminate the marriage penalty by doubling the cap to $20,000 for joint filers for 2019 and would fully restore the state and local tax (SALT) deduction for 2020 and 2021. The cost of this plan would be fully offset by returning the top individual tax rate from 37 percent, back to 39.6 percent, prior to the GOP tax bill of 2017.
A SALT working group was formed earlier this year and was chaired by Ways and Means Select Revenue Measures Subcommittee Chairman, Mike Thompson (D-CA). Suozzi was asked to lead this legislation by his colleagues by the Ways and Means Committee.
“The SALT cap was particularly unfair to Long Islanders and New Yorkers because they already subsidize other states by paying $48 billion more into the federal government than we receive back, it is a tax on taxes already paid, and it hits the homeowners whose local taxes fund police, firefighters and other services. It is a great honor to have been asked by the Ways and Means Committee to take the lead on introducing this legislation. It was also important to me that our bill should be a bipartisan effort, which is why I am especially grateful to Representative King for cosponsoring my bill to restore tax fairness for our constituents on Long Island,” said Suozzi.
“Eliminating deductions for local and state taxes will have a devastating effect on New York. We give far more to Washington then we get back. For every dollar we give, we get $.79 back. That’s a $48 billion shortfall and hurts our middle-class Long Islanders. This legislation is critical,” said King.
The capping of the SALT deduction, Suozzi said, was unfair to Long Islanders because:
- New Yorkers already subsidize other states by paying $48 billion more in taxes than they receive back from the federal government, more than any other state.
- The repeal of the SALT deduction results in double taxation by imposing a federal tax income which already paid for state and local taxes.
- State and local governments are being penalized – the creation of the SALT deduction was coupled with the creation of a federal income tax in 1913. When the 16th amendment was ratified, lawmakers at the time did not think it was fair for Americans to pay taxes on taxes.
- The elimination of the deduction drives 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 average SALT burden is above the $10,000 cap in 52 of 62 counties in New York.