Freshman U.S. Congressman Mondaire Jones, elected in November to replace Rep. Nita Lowey who has retired, has made good on his campaign promise to work for the repeal of the $10,000 cap on state and local tax (SALT) deductions.
Jones, who represents New York’s 17th Congressional District, is co-sponsoring the SALT Deductibility Act in the House with Tom Suozzi of Long Island, also a Democrat; Majority Leader Charles Schumer (D-N.Y.) is sponsoring it in the Senate. The bill was introduced in both chambers on Jan. 28.
The Trump administration’s Tax Cuts and Jobs Act of 2017 limited the deductions, leaving hundreds of thousands of people having to pay thousands of dollars more in taxes each year, especially those living in high-tax states with high property values.
While the bill’s sponsors face an uphill battle in Washington — it was removed from the draft COVID-19 relief bill on Thursday, Feb. 11 — we hope they will soldier on.
Meanwhile, Assemblywoman Amy Paulin has introduced legislation in the NY Assembly that would make the full SALT deduction available to partnerships and other pass-through entities. She also has a lawsuit pending against the IRS, with Scarsdale as the plaintiff, which defends a law she authored and passed in 2018 to allow individuals to contribute to certain school and other reserve funds and take the full SALT deduction for those donations.
Whether in Washington or Albany, we are hopeful events will play out to provide the tax relief that New Yorkers need and deserve.