close
close

Gottagopestcontrol

Trusted News & Timely Insights

Opinion | LaLota: Raise the SALT deduction cap to protect local communities
Idaho

Opinion | LaLota: Raise the SALT deduction cap to protect local communities

New Yorkers desperately need relief from our state’s crushing tax burden, the highest in the country. This excessive taxation is driving residents to states like Florida, North Carolina, South Carolina, and Texas, where taxes are significantly lower. While it’s critical for Albany to take action and lower taxes to make New York more affordable, in Washington I’m fighting to increase the cap on the state and local tax (SALT) deduction. This would provide New Yorkers with much-needed financial relief and help stem the exodus from our state.

To finance the tax cuts in the Tax Cuts and Jobs Act, politicians in Washington in 2017 set a $10,000 cap on the previously unlimited SALT deduction. The law followed years of low employment, higher wages, and investment in American companies. And even though the New York Times Tax Bill Calculator and other studies show that the law reduced the overall federal tax burden for the overwhelming majority of Long Islanders, I would have voted against the law if I were in Congress at the time. The reason is simple: The tax cuts benefited taxpayers in other states far more than taxpayers in New York.

For Long Island families, increasing the SALT deduction is not just a matter of tax policy; it is about economic justice and supporting the middle class. Many Long Island households are burdened by high property taxes that fund important local services like schools, infrastructure, and public safety. The $10,000 cap disproportionately affects residents in high-cost areas, forcing them to bear a higher tax burden without the relief the SALT deduction once provided.

Recognizing that the SALT cap unfairly disadvantages homeowners in high-tax states, hampers economic growth, and threatens the quality of public services, I introduced the SALT Fairness and Deficit Reduction Act. This bill would raise the cap to $60,000 for those filing individually and $120,000 for those filing jointly—amounts that effectively remove the cap for about 98% of my constituents. By advocating for the reinstatement of the SALT deduction, we are emphasizing the need for fair and equitable tax policies that truly support our local communities.

The impact of the SALT deduction goes beyond individual households; it affects the entire local economy. When families have more disposable income due to lower federal tax liabilities, they are better able to contribute to the local economy. Increased consumer spending stimulates businesses, creates jobs, and promotes economic growth. In addition, raising the cap on the SALT deduction is an investment in the stability and vitality of Long Island communities.

In summary, restoring and expanding the SALT deduction isn’t just about reducing the tax burden on individual households—it’s about securing the economic well-being of our entire community. By raising the cap, we can provide Long Island families the financial relief they deserve and enable them to invest in their future and contribute to our local economy. The SALT Fairness and Deficit Reduction Act is a necessary step toward a fairer tax system that supports middle-class families, strengthens our public services, and helps keep New Yorkers in New York. Now is the time for Washington to act decisively and make this important investment in our state’s future.

Rep. Nick LaLota (R-Amityville) represents the 1st Congressional District.

The survival of local journalism depends on your support.
We’re a small, family-owned business. You rely on us to stay informed, and we depend on you to make our work possible. Even a few dollars can help us continue to provide this important service.
Support RiverheadLOCAL today.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *