Last week, U.S. Rep. Thomas Suozzi and Senate Majority Leader Chuck Schumer of New York revealed that they filed legislation to repeal the federal State and Local Tax (SALT) deduction cap. This proposal deserves swift consideration and approval by the House of Representatives and U.S. Senate.
As part of their 2017 overhaul of the tax code, the previous administration set a $10,000 cap on federal deductions for state and local taxes. Whether it was truly a petty act of revenge aimed at political adversaries matters little at this point; the result was a backdoor tax hike for Nassau residents that was folded into a so-called “Tax Cuts and Jobs Act.”
Then, it was painful – now, amidst the sharp economic downturn caused by the COVID-19 pandemic, it is simply devastating. Thankfully, President Biden has indicated his support for eliminating the cap, and the concept enjoys bipartisan support amongst Long Island’s Congressional delegation.
Momentum is building - and not a moment too soon. As a result of the most severe economic downturn since the Great Depression, Nassau County and the region are still reeling from an alarming spike in unemployment and food insecurity. Repealing the SALT deduction cap would provide an essential boost to our long-term recovery and deliver meaningful relief to many Nassau families.
ARNOLD W. DRUCKERNassau County Legislator, LD 16Plainview