WITH JUST LEAKED SENATE PROPOSAL COMPLETELY EVISCERATING STATE & LOCAL TAX DEDUCTIONS, NEW YORK’S TWO SENATORS, SCHUMER AND GILLIBRAND, JOIN TOGETHER TO URGE NEW YORK HOUSE COLLEAGUES TO VOTE ‘NO’ ON ANY TAX PLAN THAT WILL COST NEW YORKERS MORE MONEY; SENATORS SAY NO MATTER HOW YOU SPIN IT, NEW YORK WILL BE DOUBLE TAXED

Senators To NY Reps: It’s Time To Put New York First

U.S. Senate Minority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand today called on New York’s House members to vote against any tax bill that seeks to reduce or eliminate state and local tax deductions. Schumer and Gillibrand said that is it even more vital that New York’s House members vote against any proposal that seeks to eviscerate the state and local tax deductions many Upstate New Yorkers rely on, especially in light of reports that the Senate proposal would completely eliminate these middle-class deductions.

“It is crystal clear: Republicans are on a fast track to fully eliminate the state and local tax deduction, which would be disastrous for New Yorkers who rely on the savings from these deduction for home repairs, groceries, school supplies, or even the yearly vacation. The bottom line is this money belongs in the pockets of New Yorkers and with the Senate now looking to eliminate SALT, it’s even more important that New York’s House members stand up for New York and vote no next week,” said Senator Schumer. “Senator Gillibrand and I are calling on every member of the New York delegation to put New York first and vote against any proposal that will cost New Yorker’s more by eliminating or reducing SALT deductions. State and local deductions are bedrock middle-class deductions that help steady the cost of many middle-class families living in New York and should not be eliminated or even reduced so people making millions of dollars a year can catch a tax break of their own. It is double taxation, plain and simple. The compromise was never adequate, and now with this leaked proposal showing the real aim to completely eliminate SALT deductions, it is vital that New York’s House members vote against this tax bill that is a gut punch to New York’s middle class. Republicans still clinging to this compromise as an excuse to vote for the tax bill should abandon ship before it’s too late.”

Schumer and Gillibrand explained that if the GOP tax plan were to pass, many New Yorkers could lose tens of thousands of dollars in deductions, which would cause a tax increase for many middle-class New Yorkers. According to the Institute on Taxation and Economic Policy, under the House republican legislation, 14% of taxpayers in New York – over 1,346,000 – would see a tax increase in 2018, and 24% of taxpayers – over 2,307,500 – would see a tax increase by 2027. Additionally, the senators pointed out 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. 

Schumer and Gillibrand said Republicans have proposed to slash state and local deductibility, a bedrock middle-class and upper-middle-class tax deduction. In fact, thousands of Upstate New Yorkers use this deduction every year to make ends meet. The Senators explained the House Republican tax plan would impact 3 million New Yorkers, approximately one-third of New York’s taxpayers. The GOP will say that the loss of these deductions will be balanced by the increase in the standard deduction but even after those changes are factored in, New York is still a net loser. Schumer and Gillibrand the GOP led tax plan hurts New York State.

Schumer and Gillibrand gave the following examples of how this really could impact a families in New York

Family of Five Making $75,000 Per Year

¨      Sam and Molly have three children and live in New York . They are young parents and recent homeowners. Sam and Molly are still paying off student loan debt, and they had large medical bills this year after one of their children became very ill. They currently itemize their taxes, taking advantage of the SALT, mortgage interest, student loan, and medical expenses deductions.

¨      Under the so-called Tax Cuts and Jobs Act, Sam and Molly actually see a tax increase. This young couple will pay at least $1,279 more in taxes.

A breakdown of this impact appears below, by district:

* prepared by the Government Finance Officers Association using 2015 IRS data

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