Lowey Marks Tax Day By Decrying Loss Of SALT Deduction

DOBBS FERRY, NY — Rep. Nita Lowey, D-Harrison, held a telephone press call Tuesday to highlight the consequences of the GOP tax law for the lower Hudson Valley, emphasizing the gutting of the state and local tax deduction, or SALT. Also on the call were Westchester County Executive George Latimer, Westchester County Legislator MaryJane Shimsky, Dobbs Ferry Mayor Bob McLoughlin and Dobbs Ferry Budget Committee Chairman Paul Sterne.

Lowey said that capping the state and local tax deductions at $10,000 was shameful, especially because of the high tax burden in the state and the fact that New Yorkers already send more to the federal government than they get back.

“Simply put, this tax scam places a target on the backs of New York taxpayers, including many of my constituents,” she said.

“The bottom line is that capping the SALT deduction may force some to leave New York State, leading to higher taxes on those who remain or a significant reduction in vital local services like first responders and health care,” Lowey said.

“The GOP tax scam is bringing sweeping changes that New Yorkers must be prepared for,” she said. “With Tax Day today, it’s important that our constituents know that we are fighting back.”

Prior to enactment of the federal tax law in December, New Yorkers who itemized could deduct their state and local property and income taxes. The SALT deduction was a major source of tax fairness for high-taxed states such as New York, where 35 percent of taxpayers deduct an average of more than $22,000 every year.

Lowey’s office said that in the 17th Congressional District, which the congresswoman represents, the rate is even higher, with 45 percent of taxpayers relying on the SALT deduction at an average of $26,000.

The cap on the deduction effectively raises taxes on millions of middle-class Americans who depend on the deduction, a spokesman said.

Lowey and Rep. Peter King, R-NY2, introduced bipartisan legislation — the SALT Deductibility Act — to restore the deduction in its entirety.

Lowey said she also sent a letter to Acting IRS Commissioner David Kautter urging the agency to let taxpayer fully deduct prepaid 2018 state and local property taxes on 2017 returns. She said the IRS has warned that not all prepayments would be deductible on 2017 returns, leaving many people with uncertainly whether they will receive tax relief or an additional tax bill.

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