Felder Proposes Tax Credit to Shield New Yorkers From Elimination of SALT Deduction

BROOKLYN -

New York State Senator Simcha Felder is proposing a bill to protect New York taxpayers from higher taxes that may result from the Republican federal tax-reform plan.

The federal tax plan currently working its way through Congress would eliminate deductions for state and local taxes (SALT).

New York Gov. Andrew Cuomo and much of the state’s congressional delegation have decried the elimination of the SALT deduction, which Cuomo has called “a direct attack on the states with higher state and local taxes,” saying that “these states will be at a competitive disadvantage to other states with lower local taxes.” Republicans argue that the federal government, and taxpayers from low-tax states, should not be forced to subsidize tax deductions for high-tax states.

The bill proposed this week by Felder would create a state tax credit for each taxpayer equal to the amount of their federal tax increase resulting from the elimination of the SALT deduction.

Felder says he is seeking to protect New Yorkers from “political maneuvering that isn’t their fault, but will soon be their problem.”

“This bill would hold harmless New York taxpayers from any possible tax increases caused by federal tax reform,” said Felder. “I’m not interested in whose fault it is; let the governor and the president fight that out. But we cannot stand by and force New Yorkers to become the collateral damage of tax reform.”

In a statement to Hamodia‘s regarding Felder’s proposal, a Cuomo spokesperson said, “The focus needs to remain on defeating this disastrous policy on the federal level and holding accountable those Congress members who vote to harm their own constituents.”