Congressman Dan Donovan (NY-11), leaders from the Staten Island Board of Realtors, and a local accountant and College of Staten Island (CSI) Accounting and Finance Professor today detailed how the new tax law, which capped the SALT deduction, will negatively impact hardworking New Yorkers. The experts shared their perspectives on how capping the deduction – which has been a part of the U.S. tax code since 1913 – will harm middle-class residents and negatively impact the already-unaffordable housing market in New York City.
Congressman Donovan said, “Today, with local experts, we focused on the real-life impact this bill will have on families in our district and across the state. They made it clear that this legislation will harm, not help, our community. More of our hard-earned money will go to Washington to subsidize tax cuts for the rest of the nation. That’s why I voted no.”
By capping the SALT and mortgage interest deductions, the tax reform law harms rather than helps many middle class New Yorkers. Analyses show that New York’s share of the country’s tax burden under the final plan will grow by 9 percent – the largest increase of any state in the nation. Additionally, a study by the Institute on Taxation and Economic Policy, found that the inclusion of a $10,000 cap to deduct a combination of state and local income taxes and property taxes, which was included in the final bill, was not enough to prevent a tax strain on New Yorkers.
Additionally, while the tax bill made the SALT deduction permanent for corporations, it phased out the cap for personal filers in eight years.
Donovan continued, “If the SALT deduction isn’t all that important, then why does the tax bill make it permanent for corporations? Eliminating the SALT cap in eight years -- that’s too small to begin with -- might be a stay of execution, but it’s still an execution.”
Today’s event is part of Donovan’s continued work on behalf of hardworking and middle-class New York taxpayers. Donovan was a leading proponent of protecting the SALT deduction during tax reform negotiations. His advocacy included discussions with Congressional leadership and the White House, as well as a compromise proposal. His efforts alongside some of his colleagues led to positive changes, including adding a $10,000 cap on the SALT and mortgage interest deductions -- instead of complete elimination -- and protecting the student loan interest and medical expense deductions. However, those fixes did not go far enough to ensure that a majority of Staten Islanders and Brooklynites would get the tax relief they deserve.
Full list of speakers:
Congressman Dan Donovan (NY-11)
Sandy Krueger, CEO of the Staten Island Board of Realtors
Laura Farrell, Accountant for 30+ years and CSI Accounting and Finance Professor