Cuomo and Schumer Oppose Federal Tax Plan to Reduce or Eliminate SALT Deductions

U.S. Sen. Charles Schumer and NY Gov. Andrew Cuomo

CANANDAIGUA – Governor Andrew Cuomo and Senator Chuck Schumer launched a statewide push across congressional districts Monday to urge New York’s delegation to stand up for the middle class and oppose the repeal or reduction of state and local tax deductions (Also known as “SALT” deductions) in the proposed tax plan.

According to governor Cuomo, if the Republican tax plan recently introduced in Washington were to pass, many New Yorkers could be saddled with a tax increase of thousands of dollars. They also say that eliminating or reducing the state and local tax deduction would have ripple effects of decreasing home values in the region and placing pressure on state and local governments to reduce their taxes and cut spending on education and their local fire and police departments.

In September the city of Jamestown also unanimously approved a resolution calling for the federal government to not eliminate or reduce the SALT deduction and it was signed the following day by Mayor Sam Teresi.

Cuomo and Schumer discussed the issue while standing with homeowners in Canandaigua, which sits on the border of Congressman Tom Reed’s 23^rd congressional District (which includes Chautauqua County) and Chris Collins 27^th Congressional District. Both Republicans are expected to support the SALT elimination.

In response to the press event by Cuomo and Schumer, Rep. Reed released a statement on his Facebook page.

“I believe a compromise position regarding the state and local tax deduction is achievable. In fact, I have discussed including a credit for state and local taxes which will ensure a tax cut for the hardworking local property taxpayers of New York State. I care about cutting taxes for the middle class,” Reed said on his Tuesday morning Facebook post.

He also took aim at Schumer and Cuomo for their press event.

“Sen. Schumer and Gov. Cuomo have spent years championing how the wealthy one percent need to pay their fair share; our proposal does just that. As a result, Schumer and Cuomo will be proven to be the biggest hypocrites in New York political history, as they are the ones actually protecting the one percent at the expense of the rest of us,” Reed said.

According to the Institute for Taxation and Economic Policy, in New York, 23 percent of taxpayers making $65,900 to $111,100 would see an average tax increase of $460 and 42 percent of taxpayers making between $111,100 and $240,900 would see an average tax increase of $1,960 next year.