House Of Representatives Passes Build Back Better Bill That Raises SALT Deductions Cap From $10,000 To $80,000
WESTBURY, N.Y. (CBSNewYork) -- The U.S. House of Representatives took a major step toward repealing the SALT cap Friday when it passed the Build Back Better bill.
The House voted to dramatically increase the cap, which limits the deductibility of state and local taxes, CBS2's Carolyn Gusoff reported.
"Wow, that's fantastic. That's really great," said homeowner Carolyn Coleman, elated to hear about the deal.
"No SALT, no deal" was the mantra of Rep. Tom Suozzi, who represents parts of Long Island and Queens. Suozzi led a coalition to reverse the 2017 tax cap on the deductibility of state and local taxes.
"It's basic fairness. You shouldn't be taxed on taxes you've already paid," Suozzi said.
Suozzi hailed the vote as a "big victory" after years of salt in the wounds of high-taxed New Yorkers, essentially double-taxed, not allowed to deduct more than $10,000.
The House raised the SALT deduction from $10,000 to $80,000.
"Of course it makes a difference, absolutely. It's about time they repealed it," said David Wayne of North Bellmore.
The vote was blasted by the Republican National Committee as "a huge tax cut for the wealthiest Americans," and "a bail out for blue state billionaires."
But on Long Island, even modest property tax bills are more than $10,000.
"Folks in Washington, D.C. don't understand that a family that makes $250,000 a year here is not rich," said Kyle Strober, director of the Association for Better Long Island.
"Someone in the 24% bracket, for instance, which would be a lot of families on Long Island, if all of the sudden they're now able to deduct $30,000 of state and local taxes instead of 10, that could be nearly a $5,000 savings," said Jeffrey Levine from Buckingham Strategic Wealth.
Rep. Lee Zeldin, who represents parts of Long Island ans did not vote for the bill, said, "My position in support of raising or eliminating the SALT deduction cap has not changed. I am a cosponsor of legislation to repeal the SALT deduction cap and am a founding member of the bipartisan SALT Caucus."
The measure heads next to the U.S. Senate, where changes could be made, including restricting the relief to those who make less than $400,000.
If the Senate makes changes, the whole bill would head back to the House for another vote. To that, Suozzi also says no SALT, no deal.
The House measure expands the SALT cap through 2030.