A Terrible Tax Deal for NY
Yesterday, the House Republicans released a tax plan that is tantamount to a war on New Yorkers and would harm hardworking people across the country. This bill would double tax New Yorkers, penalize us for taking care of our own, raise taxes on the middle class, increase the national debt, and lay the ground work for devastating cuts to Social Security, Medicare, and Medicaid. None of this plan is acceptable and I am going to do everything I can to make sure it never becomes law.
The GOP plan drastically curtails the State and Local Tax (SALT) deduction, which was used by more than 50% of tax filers in New York’s 12th Congressional District in 2014. Under the Republican proposal unveiled this week, state and city income taxes would no longer be allowed to be deducted from our federal returns and the property tax deduction would be capped at $10,000. According to data from the non-partisan Government Finance Officers Association, for the average New York family of four that owns a home this change would raise taxes by 26% or $1,360.
In addition to leading to a tax increase for many New Yorkers, if Congress approves this partial elimination, it will create tremendous pressure on state and local governments to cut back funding for schools, infrastructure, health, local law enforcement, and first responders. Investing in our city and state should be rewarded, not penalized.
Our state is already the largest donor state in the country, sending more money in taxes to the federal government than we get back. In 2015, that difference was $48 billion. This will become even greater if the Republicans succeed in passing this tax plan.
There are many other harmful aspects of this plan. It eliminates the personal exemptions used to decrease your taxable income, gets rid of the deductions for medical expenses and student loan interest, caps the mortgage interest deduction to loans below $500,000 (down from the current level $1 million), and more.
Our country, our state, and our city need and deserve a far better deal than this harmful and outrageous GOP tax hike plan. We deserve a plan that that puts middle class families first and doesn’t double tax New York and cities like it.
You can count on me voting against this bill and urging all my colleagues to do the same.
Carolyn B. Maloney
Member of Congress