STATEN ISLAND, N.Y. — Federal legislators say they want a more generous tax deduction for residents of high-tax states like New York, but it’s unclear how they’ll get there.
Since the 2018 tax year, state and local tax (SALT) deductions have been capped at $10,000 due to the passage of the 2017 Tax Cuts and Jobs Act under former President Donald Trump
Previously, the deduction had been uncapped allowing taxpayers to deduct their state and local liabilities when filing their federal income tax, and elected officials from both parties have pushed for something closer to that system.
Their push has been bipartisan, but sectional leaving elected officials from high-tax states like New York, New Jersey and California fighting an uphill battle against their fellow legislators from around the country.
For instance, three New York Republicans, one of their California counterparts, and a New Jersey Democrat are pushing a bill that would eliminate a “marriage penalty” for couples filing their returns. Currently, joint filers have their SALT deductions capped at $10,000 and separate filers are capped at $5,000 each.
Under the legislation sponsored by Rep. Mikie Sherrill (D-N.J.), Rep. Mike Garcia (R-Calif.), Rep. Nick LaLota (R-Long Island), Rep. Marc Molinaro (R-Upstate), and Rep. Anthony D’Esposito (R-Long Island), joint filers would have their SALT deduction cap increased to $20,000 and married couples filing separately would have their individual caps upped to $10,000.
Rep. Nicole Malliotakis (R-Staten Island/South Brooklyn) has long been a proponent of raising the SALT deduction, and said she would support the legislation.
“Whether it’s my legislation to increase the standard deduction, the expansion of the Child Tax Credit we recently passed, or increasing SALT relief, I am for any measure that will lower taxes for my constituents,” she said. “I will support this legislation with the understanding that we have the best chance of providing SALT relief in…
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