County officials statewide are concerned deductions to the State and Local Tax deductions would have a direct and negative impact on New York homeowners, communities, and local governments.
“When it comes down to it, efforts to change the SALT deduction are efforts to punish New Yorkers. We pay more to the federal government than we receive in return,” Onondaga County Executive Joannie Mahoney, the president of the NYS County Executives Association said.
“If we are no longer able to deduct what we pay state and local taxes, then we will be giving even more to the federal government, and we will still get far less back,” Mahoney added.
The deduction of state and local taxes for federal income tax purposes has been a part of the tax code since its official inception in 1913, and even earlier with the precedent set by President Lincoln and the Civil War income tax.
The deduction was one of the six original federal tax deductions because it represents a core principle of federalism in that it prevents double taxation since state and local taxes are mandatory payments.
In 2015, over 3.3 million households in New York State claimed the SALT deduction. Homeowners with an adjustable gross income of between $50,000 and $200,000 would see an average annual tax increase of $815 if the SALT deduction is eliminated, even when coupled with other federal tax reform proposals.
“Our elected federal representatives need to know that this proposal would hurt the hardworking homeowners of New York,”Putnam County Executive MaryEllen Odell, president of the New York State Association of Counties, said.