SCHUMER: WESTERN NEW YORK HOMEOWNERS IN TAX JEOPARDY AS NEWLY CONFIRMED U.S. TREASURY SECRETARY SUGGESTS REDUCTION IN MORTGAGE INTEREST AND STATE & LOCAL PROPERTY TAX DEDUCTIONS; WOULD HIT ERIE COUNTY PARTICULARLY HARD; SENATOR PLEDGES TO USE NEW ROLE TO FIGHT ANY EFFORTS THAT WOULD PICK THE POCKETS OF HARDWORKING TAXPAYERS & HOMEOWNERS
Standing With Homeowners in Amherst, Schumer Pushes To Save Vital Federal Deductions Western New Yorkers Depend On; Pledges Major Fight
Homeowners Have Expressed Serious Worries With Secretary Mnuchin & Future Of Critical Deductions; Schumer-Backed Deductions Put a Little Extra Money in the Pockets of Western New York Families
Schumer: Western New York Homeowners Cannot Afford A Giant Tax Increase Courtesy Of The Feds
Standing with Erie County homeowners and amidst rising local anxiety, U.S. Senate Minority Leader Charles E. Schumer today launched a push to preserve popular, and increasingly at-risk tax deductions, which Western New York homeowners and taxpayers depend on. Whether new homeowners, longtime owners, or those looking to buy right now, Schumer said locals are in tax jeopardy as newly-confirmed U.S. Treasury Secretary Mnuchin has suggested threats to mortgage, state, and local property tax deductions. Schumer said reductions or elimination of these vital tax deductions would hit Western New York particularly hard, at a time when the region is just beginning to see a resurgence in the housing market and economic revival. According to the Tax Foundation, the median property tax bill paid in Erie County was $3,450 from 2010-2014. According to the IRS, in 2014, approximately 1.9 million New Yorkers filed for the mortgage interest deduction each year and 2.37 million New Yorkers filed for the real estate tax deduction, for payments made on their state and local taxes. Schumer pledged to fight any efforts that would rollback critical deductions used by Amherst and Western New York homeowners and taxpayers. Schumer explained why this fight is so critical to families across the region.
"New Yorkers have sounded the alarm about preserving both the mortgage interest and state and local tax deductions – vital policies that keep a little extra money in the pockets of Western New York homeowners. I hear you loud and clear and I will aggressively fight any push to kill these fair and vital tax deductions that benefit the American middle class,” said U.S. Senator Charles Schumer. “Treasury Secretary Mnuchin and many in Congress, especially in the House, just do not understand the critical need for federal tax deductions that Western New York homeowners depend on. Eliminating, or even reducing, these deductions would hurt hardworking families right off the bat, and it would dissuade those looking to purchase a home in Erie County, and across New York State. Families who have used this tax credit previously will have to pay more in federal taxes, which will have a negative impact on the local economy. I will use my clout in the Senate to fight all efforts that would roll back the critical mortgage-interest deduction and the state and local property tax deductions.”
Under the current federal tax system, taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes as well as either income taxes or general sales taxes. State and local income and real estate taxes make up approximately 60 percent of local and state tax deductions while sales tax and personal property taxes make up the remainder. According to the Tax Policy Center, approximately one-third of tax filers itemize deductions on their federal income tax returns. The mortgage interest tax deduction allows borrowers to deduct the interest paid on their home loans from their income taxes. Homeowners who itemize their taxes can deduct mortgage interest payments on up to $1 million for married couples and $500,000 for those filing separately. According to the Tax Policy Center, approximately 40 million households in the United States benefit from the mortgage interest deduction. A Congressional Research Service analysis of IRS data found that, in 2012, over 86% of returns including a mortgage interest deduction were from those making $200,000 or less.
“Taking away or reducing these deductions on federal tax returns would be brutally unfair and would hit Erie County homeowners right between the eyes. It is exactly the wrong thing to do if we are serious about helping to build and expand the middle class,” added Schumer.
Schumer was joined by Amherst homeowners Megan and Brian Blake.
Schumer said that such a move could significantly impact residents in Erie County, where the rate for home ownership is almost 69 percent, and the property tax burden is significant. For instance, according to 2015 data from the NYS Department of Taxation and Finance, the median residential home sale price in Erie County was $130,000. According to the Tax Policy Center, the average annual property tax burden was $3,219 in Erie County in 2015. According to the IRS, in 2014, approximately 1.9 million New Yorkers filed for the mortgage interest deduction each year and 2.37 million New Yorkers filed for the real estate tax deduction. Finally the Tax Policy Center, found that approximately 40 million households in the United States benefit from the mortgage interest deduction. According to Congressional Research Service analysis of IRS data, in 2012, over 86% of returns including a mortgage interest deduction were from those making $200,000 or less.
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