U.S. Rep. Tom Suozzi (D-Glen Cove) is advocating for the repeal of the cap on state and local tax deductions in the midst of the coronavirus pandemic, according to an op-ed the congressman wrote in the Wall Street Journal.
The repealing of 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, the necessary resources in the ongoing battle against the virus.
“During the current pandemic, not only do our taxpayers need the relief but also because the state and local governments are losing tax revenues as people move away,” Suozzi said. “Nothing could be more damaging to our governors and local officials as they try to combat the coronavirus.”
As of Monday, more than 130,000 New Yorkers had tested positive for the coronavirus, according to Gov. Andrew Cuomo. Of that total, which includes people who have recovered from the virus, 4,758 have died.
New York has three times as many cases as New Jersey, the state with the second-most confirmed cases at more than 41,000. As the domestic epicenter of the virus, the need for New Yorkers to purchase resources to combat the pandemic is necessary, Suozzi said.
“Now, in addition to dealing with an unfair tax increase, New York’s governor and mayors are being hobbled by an unfair tax policy that is limiting their resources to confront COVID-19,” Suozzi wrote.
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 said the income of teachers, health-care workers and first responders in New York’s 3rd Congressional District, which he represents, classifies them as middle-class residents on Long Island.
“Their incomes, which are higher than in other parts of America, place them squarely in the middle class in places like Long Island, where the cost of living is around 50 percent higher than the national average,” Suozzi wrote.
President Trump capped the deduction at $10,000 in a 2017 federal law that reduced taxes for corporations and most wealthy and middle-class families, but required Long Islanders and other Northeastern residents to pay more in income tax after they lost the full benefits of the deduction.
In December, with the support of U.S. Sen. Charles Schumer (D-N.Y.) and fellow U.S. Rep. Peter King (R-Seaford), a bipartisan bill to increase the cap to $20,000 for the 2020 tax filing year passed the House of Representatives.
According to Suozzi, the bill would also eliminate the current cap in 2020 and 2021 for all individuals who file their taxes with an adjusted gross income of $100,000 or less.
“America is dealing with a grave public-health crisis that is worsening by the day,” Suozzi wrote. “Sound public policy, fairness and an all-hands-on-deck effort demand that the cap on the SALT deduction be repealed in the next legislative package that addresses this crisis.”
