New York Gov. Andrew Cuomo (D) and labor leaders are continuing to call on Congress to repeal the federal cap on the state and local tax deduction and to help provide financial assistance amid the COVID-19 pandemic.
Cuomo and labor leaders sent a letter to federal representatives asking for federal funds to help address budget shortfalls, prevent job losses, and fund “critical infrastructure projects,” according to an August 31 release.
New York is in “an impossible financial situation” with state and local governments facing $59 billion in budget shortfalls, the release said.
Cuomo and the labor leaders said in the letter that Congress should “repeal the damaging and offensive SALT tax ‘reform’” enacted under the Tax Cuts and Jobs Act. The cap “costs the people of the State of New York as much as an additional $15 billion each year,” according to the letter.
State efforts would not be enough to fully address the current financial crisis, according to the letter. “Even if state and local governments cut expenses, increase taxes, and reduced services, the revenue shortfall would still be in the billions of dollars. Moreover, forcing state and local governments to take such actions would only further the pain and extend the period of time for the nation's economy to recover.”
The letter said $43.5 billion is needed for state and local expenses and an additional $15 billion is needed for the Metropolitan Transportation Authority and the Port Authority of New York and New Jersey. "The Port Authority's projects rebuilding LaGuardia and JFK Airports are currently employing thousands of private sector construction workers," it said.
"We must not lose these jobs and these projects — they are necessary to cementing New York's economic future," the letter continued.
Cuomo’s office did not respond to a request for comment by press time.
During a May 13 briefing on the pandemic, Cuomo said repeal of the SALT cap would be “the single best piece of action for the state of New York.”