U.S. Rep. Tom Suozzi (D-Glen Cove) called on New Yorkers to stop funding politicians who refuse to help in repealing the cap on the state and local tax deduction during a virtual Zoom news conference on Monday.
Repealing the tax cap, Suozzi said, will provide local governments and residents in states such as New York, which have been affected the most by the coronavirus, necessary resources in the ongoing battle against the virus.
“Some New Yorkers are complicit in funding our own demise by supporting elected officials who not only redirect billions of New York state’s federal tax dollars to their own states but also capped the SALT deduction. This is literally chasing people out of New York,” Suozzi said. “New Yorkers are left holding the bag in the form of higher taxes and our largest companies are being lured to other lower-cost states.”
Suozzi referred to reports of Goldman Sachs, the long-time New York City-based investment bank, being interested in moving to Florida as a “red alarm.” According to multiple reports, the bank has looked at potential South Florida office spaces near Miami due to the cheaper real estate opportunities and the ability for its employees to work remotely, much like other corporate businesses throughout the nation.
“We are asking Goldman Sachs not to abandon New York during our time of need,” Suozzi said. “New York is suffering and we know we have to help you by addressing the SALT deduction, among other issues.”
The cap, signed into law by President Donald Trump, limits the deduction for state and local taxes on federal tax returns to $10,000. It has led to increased federal taxes in areas with high property taxes like Long Island. Repealing the cap, Suozzi said, would put money back into the hands of middle-class taxpayers despite claims from some it would benefit only the wealthy.
Suozzi also said that New York has recently been one of the states that have paid more money to the federal government than they received. From 2015 to 2019, Suozzi said, New York, sent $116 billion more to the federal government than it got back. Over the same period, Kentucky received $148 billion and South Carolina received $87 billion more than they contributed to Washington.
Suozzi mentioned both Majority Leader Mitch McConnell (R-Kentucky) and U.S. Sen. Lindsey Graham (R-South Carolina) as two politicians that have criticized “blue states” for wanting more federal aid in response to the coronavirus pandemic. Suozzi said in 2019 and 2020, more than 7,800 New Yorkers contributed more than $35 million combined to their campaigns and GOP-associated Senate political action committees.
Suozzi said he will not only introduce new legislation in January to repeal the cap but his team will compile a report of all New Yorkers who have contributed “significant” financial donations to support the campaigns of politicians who continue to “undermine New York” by not advocating for the repeal of the cap.
“I know this is extreme, but New York is in an extreme financial crisis,” Suozzi said. “The pain and hardship our residents face is extreme. All New Yorkers must recognize that contributing to campaigns of anti-New York officials is like aiding and abetting the very politicians who are purposely trying to undermine New York.”
Suozzi’s previous attempt to repeal the cap passed in the House of Representatives but has stalled in the Senate.
“When it comes to SALT, if you think Long Islanders needed and deserved this money before the coronavirus took hold, the stakes are even higher now because the cap is costing this community tens of thousands of dollars they could be using amid the crisis,” Schumer said in a July news conference with Suozzi. “We need to bring our federal dollars back home and cushion the blow this virus – and this harmful SALT cap – has dealt so many homeowners and families locally.”