New York Gov. Andrew Cuomo (D) praised congressional Democrats for including in a federal stimulus bill a provision that would repeal the state and local tax deduction cap.
The provision was included in the Health and Economic Recovery Omnibus Emergency Solutions Act (H.R. 6800), sponsored by Rep. Nita M. Lowey, D-N.Y.
Cuomo said during a May 13 briefing on the pandemic that repealing the $10,000 SALT cap enacted under the Tax Cuts and Jobs Act would be “the single best piece of action for the state of New York.” He commended Lowey and Rep. Richard E. Neal, D-Mass., for putting the repeal provision in the bill and urged them to ensure it is included in the final bill.
The SALT cap “increases the taxes of homeowners in certain states. New York is one of them,” Cuomo said during the briefing. “It costs New York state about $29 billion per year, [and] the state of Massachusetts $11.8 billion per year. It also affects New Jersey, Connecticut, [and] Maryland.”
Cuomo also called for a repeal of the SALT cap during an April 11 briefing, saying it would help New York and other states most affected by revenue shortfalls related to the COVID-19 pandemic.
New York has an approximately $61 billion funding gap, according to Cuomo, who said federal funding is needed in order to prevent possible cuts to police, firefighters, and schools.
Cuomo’s office did not respond to a request for comment by press time.