Wednesday, March 13, 2019

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Lt. Gov. urges Kingston leaders to support property tax caps and income tax deductions

KINGSTON – New York Lt. Governor Kathy Hochul visited Kingston Tuesday afternoon, urging local leaders to support efforts to reverse capping of the State and Local Tax (SALT) deduction.

Signed recently by President Donald Trump, the Tax Cuts and Jobs Act instituted a $10,000 maximum on the SALT deduction, starting with the 2018 tax year. Previously, there was no limit.

The SALT deduction allows taxpayers in high-tax states to deduct local tax payments on their federal income tax returns. SALT deductions apply to property, income and sales taxes. Overall, people with incomes over $100,000 receive 88 percent of SALT deduction benefits.

“The elimination of the SALT deduction, it’s painful for our state,” Hochul said.  “The federal government decided to literally have an all out assault on states like New York by eliminating something that has been enshrined in our tax codes since Abraham Lincoln was president and that is the premise that there should be double taxation. You should not be taxed on money you have already been taxed on. The president and the congress went along with this so-called tax reform plan, which is supposedly going to make all of you rich and have lots of extra money in your pockets – anybody feeling that? And I feel bad if you haven’t done your taxes yet because the elimination of the local and state tax deduction is painful for our state and I guarantee there are a lot of people in this county that are going to get hit hard.”

The lieutenant governor said there are 12 states that are hardest hit by the tax change with New York being number one on the hit list.

“Coincidentally, they all seem to be Democratic states; I don’t know if that escaped the president or not,” Hochul said.

Governor Cuomo met personally with President Trump to protest the issue, which she said adds $15 billion to the estimated $35 billion tax imbalance, that New York State pays Washington – above and beyond federal assistance received back.

Hochul said that Cuomo told the president, “this is going to hurt your home state.”

New York is suing because “we think it is unconstitutional,” she said.
Additionally, the two percent real property tax cap, instituted six years ago by the Cuomo administration, is currently up for renewal. “It has saved New Yorkers $25 billion,” Hochul said.

The governor wants to see that cap become permanent and is working to include it in the upcoming state budget, due to be presented by the end of the month.

 


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