Cuomo Calls On Congress To Repeal Cap On State And Local Taxes

WASHINGTON, D.C. — New York State Gov. Andrew Cuomo called on the state’s Congressional delegates Thursday to repeal the cap on state and local taxes in the next COVID-19 aid package.

Under the 2017 cap, residents who filed itemized deductions with their tax returns were prevented from deducting state and local taxes over $10,000. It was largely unpopular with New York lawmakers who claimed that the cap hit state residents hard, particularly those on Long Island, where school and property taxes are high, but the amount of state aid relief that is received is disproportionate.

New York State is currently locked in a legal battle with the federal government to end the cap.

Cuomo, who was joined by New Jersey Gov. Phil Murphy, referred to the SALT tax cap as “unconstitutional” and the “first double taxation in history.” He went on to say that it is costing taxpayers over $1 billion in additional taxes, and every day it is not repealed costs New Yorkers almost $34 million.

“It must be repealed now,” he said.

Democrats U.S. Sen. Chuck Schumer and Rep. Thomas Suozzi reintroduced paired legislation last week to repeal the cap saying that it was essential to help New Yorkers back on their feet after the COVID-19 pandemic.

Suozzi, whose previous legislation to repeal the cap died in the U.S. Senate back in 2019, said the cap on the SALT deduction was a “target on blue states and a real body blow.”

“Without the full SALT deduction, families will leave New York and the last thing we need in the midst of the health and economic devastation of COVID-19 is to lose our residents and taxpayers. Every day the SALT cap is in place, the taxpayers of New York are hurting,” he said.