Sen. Schumer Optimistic On Possible Repeal Of $10,000 Cap On SALT Deductions – CBS New York
Lawmakers on Capitol Hill will try to repeal the $10,000 cap on state and local tax deductions known as SALT.
Homeowners who pay high property taxes, like many in the Tri-State Area, were hit hard by the tax overhaul bill passed in 2017.
New tax laws limit deductions.
“Now we have a tremendous opportunity to undo that law and lower the taxes for millions of New Yorkers,” said Sen. Chuck Schumer. “This resolution has a chance of passing because it only needs 51 votes and it actually affects a whole bunch of Republican states as well.”
The Wednesday vote in the U.S. Senate targets an IRS rule in June that bans states from creating charitable funds that taxpayers can contribute to in exchange for the state tax credit.
Earlier this month, a federal judge in New York ruled that the 2017 federal tax overhaul’s cap on state and local tax deductions was not an “unconstitutional assault” on the sovereignty of high-tax Democratic-leaning states.
Judge J. Paul Oetken dismissed a challenge on Monday to the Republican-led tax overhaul filed last year by New York, New Jersey, Connecticut, and Maryland.