Cuomo, Murphy Demand Repeal Of Federal Cap On State And Local Tax Deduction
NEW YORK (CBSNewYork) -- Tri-State Area homeowners could get a welcomed tax break from Uncle Sam as officials mobilize a new campaign to restore full state and local property tax deductions, known as "SALT," that were stopped by former President Donald Trump.
New York Gov. Andrew Cuomo and New Jersey Gov. Phil Murphy are joining forces to demand the federal government repeal the cap, CBS2's Marcia Kramer reported Thursday.
Owning a home in New York, New Jersey and Connecticut could once again mean substantial tax breaks if a new push to eliminate the $10,000 SALT cap on federal tax returns is successful.
The lucrative tax break was eliminated in 2017 with the Trump administration's support.
"It is high time that this thing gets taken off the books. The longer is stays on, the more people are going to get hurt," Gov. Murphy said.
Officials in Washington, D.C. used the extra money siphoned from blue states like New York, New Jersey and Connecticut to reward republican states.
PRESS CONFERENCE: Cuomo, Murphy Demand Repeal Of Federal Cap On State And Local Tax Deduction --
"They took from New York, they took from New Jersey, they took from Connecticut, they took from California and they redistributed that money to republican states," Cuomo said.
The tax costs Connecticut homeowners about $2.8 billion, New Jersey homeowners $3 billion and New York homeowners $12 billion a year.
"Our cost per day is $34 million. Every day that SALT is not repealed is another $34 million that is taken from taxpayers of the state. Think about that. That's why time is of the essence," said Gov. Cuomo.
Eliminating the measure is a high priority for Senate Majority Leader Chuck Schumer, who recently introduced a new bill to repeal it. The measure has bipartisan support in the House, but only democratic support in the U.S. Senate.
"This was a nasty, nasty proposal in the Trump tax bill aimed 'at the blue states,'" said Sen. Schumer. "I am pushing very, very hard to get rid of that."
According to sources, Schumer's strategy will be to fold the bill into a "must pass" measure, like COVID relief, to ensure it gets passed.
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