Increase the SALT Deduction to Protect Our Communities

New Yorkers desperately need relief from our state’s crushing tax burden, which is the highest in the nation. This excessive taxation is driving residents to flee to states like Florida, North Carolina, South Carolina, and Texas, where taxes are significantly lower. While it’s crucial for Albany to take action and reduce taxes to make New York more affordable, I am fighting in Washington to increase the cap on the state and local tax (SALT) deduction. This would provide much-needed financial relief for New Yorkers and help stem the exodus from our state.

In 2017, to help fund the tax cuts in the Tax Cuts and Jobs Act, Washington policymakers imposed a $10,000 cap on the previously unlimited SALT deduction.  The Act immediately preceded years of low employment, higher wages and investment in American businesses.  And while the New York Times Tax Bill Calculator and other studies show that the Act reduced the overall federal tax burden for the overwhelming majority of Long Islanders, I would have voted against the bill if I had been in Congress at the time. The reason is simple: the tax cuts benefited taxpayers in other states significantly more than New York taxpayers.

For Long Island families, an increase in the SALT deduction is not just a matter of tax policy; it’s about economic fairness and supporting the middle class. Many households on Long Island are burdened by substantial property taxes that fund essential local services such as schools, infrastructure, and public safety. The $10,000 cap disproportionately affects residents in high-cost regions, forcing them to shoulder a heavier tax burden without the relief that the SALT deduction historically provided.

Recognizing that the SALT cap unfairly penalizes homeowners in high-tax states, stifles economic growth, and threatens the quality of public services, I introduced the SALT Fairness and Deficit Reduction Act. This legislation would raise the cap to $60,000 for single filers and $120,000 for joint filers—amounts that effectively eliminate the cap for about 98% of my constituents. By advocating for the restoration of the SALT deduction, we emphasize the need for fair and equitable tax policies that truly support our local communities.

The impact of the SALT deduction goes beyond individual households; it reverberates throughout the local economy. When families have more disposable income due to lower federal tax liabilities, they are better positioned to contribute to the local economy. Increased consumer spending stimulates businesses, creates jobs, and fosters economic growth. Moreover, raising the cap on the SALT deduction is an investment in the stability and vitality of Long Island communities.

In conclusion, restoring and expanding the SALT deduction is not just about alleviating the tax burden on individual households—it’s about ensuring the economic well-being of our entire community. By raising the cap, we can provide Long Island families with the financial relief they deserve, enabling them to invest in their futures and contribute to our local economy. The SALT Fairness and Deficit Reduction Act is a necessary step toward achieving a fairer tax system that supports middle-class families, strengthens our public services, and helps keep New Yorkers in New York. Now is the time for Washington to act decisively and make this critical investment in our state’s future.