Local Democrats Make Final Push For SALT Cap Repeal

BEDFORD, NY — The repeal of the SALT deduction cap included in the Build Back Better Act is of particular interest to New Yorkers, but the bill's passage isn't guaranteed.

This week in Bedford, Rep. Sean Patrick Maloney joined local leaders to celebrate tax relief coming for most New Yorkers thanks to the increased cap on state and local tax deductions in the House-passed Build Back Better Act — though it remains to be seen if the repeal of what amounted to a Trump era tax increase for many New Yorkers will survive debate in the Senate. Sharing the podium with Bedford Town Supervisor MaryAnn Carr and Westchester County Executive George Latimer, Maloney told those gathered that he fought to ensure the increased cap was included in the Build Back Better Act and, as a result, most New Yorkers will receive a tax cut from the legislation when it becomes law.

“We are one step closer to delivering tax relief for families and communities across New York," Maloney said. "By increasing the cap on state and local deductions, we right the wrongs of the Trump Tax Scam and restore a critical tax cut for middle class families, homeowners, and residents across the state."

Carr said that Bedford has been especially hard-hit by the limit on federal deductions for state and local taxes already paid.

"As you know, we’ve had a lot of influx of new families moving into our area so this particular tax cut is going to mean a lot to this community and to the residents of this community," Carr said. "I just want to thank Congressman Maloney for really putting this forward and making sure that New York State and the regular working-class person is not forgotten."

The $2 trillion Build Back Better Act, which passed 220-213, increased the cap from $10,000 to $80,000. That would increase the amount that taxpayers can deduct from their tax returns.

The legislation now has to go to the Senate for approval.

The cap was set at $10,000 in the 2017 federal Tax Cuts and Jobs Act passed during the Trump administration. Previously, taxpayers could fully deduct state and local taxes.

It was estimated that the reduced cap cost New York homeowners $30 billion, or $2,600 per home.

Latimer said that the SALT deduction cap isn't just a burden on New Yorkers — it was plainly punitive.

"The largest tax increase felt by Westchester County taxpayers was the – intentionally targeted – capping of the State and Local Tax Deduction at $10K included in the Trump/GOP tax plan passed in 2017," Latimer explained. "Westchester’s middle-class homeowners chose to live here because of the exceptional services provided by local governments, schools and municipal entities. Mass transit, educational opportunities, public safety officers and investments like our award-winning parks system all add to the high quality of life in our region."