New York Lawmakers Stand Together To Launch Effort To Repeal SALT Cap

Momentum is building to repeal the SALT cap on deducting state and local taxes from income tax. Thursday, New York lawmakers on both sides of the aisle stood together to launch an effort to reverse the tax change; CBS2's Carolyn Gusoff reports.

Video Transcript

- Momentum is building to repeal the SALT cap. That's the cap on deducting state and local taxes from income tax. Today, New York lawmakers on both sides of the aisle stood together launching an effort to reverse the tax change. Here's CBS2's Carolyn Gusoff.

CAROLYN GUSOFF: April 15, and taxes on the minds of Long Islanders.

- Horrible. We pay-- we live in a condo and we pay over $25,000.

CAROLYN GUSOFF: Making it even harder, the 2017 so-called SALT cap, the $10,000 cap on deducting state and local taxes.

- Most of us in Long Island are paying more than $10,000 in real estate taxes, so. It is a universal hurt.

- It's making it harder and harder to live in Nassau County.

CAROLYN GUSOFF: Opponents say it's now or never to resurrect the fight. Long Island Congressman Tom Suozzi, leading a growing bipartisan caucus and recruiting 17 New York Democratic members of Congress to refuse to support any tax legislation without the repeal. As for the president's sweeping infrastructure plan, Suozzi says no SALT, no deal.

TOM SUOZZI: This is bad for New York. A cap on the state and local tax deduction is a body blow to New Yorkers. We need to get it back. It's existential for us.

CAROLYN GUSOFF: County executives representing the hard-hit suburbs, also banding together to fight. Calling it double taxation. Owing taxes on money spent on taxes.

STEVE BELLONE: The largest federal tax increase, essentially, on middle class homeowners in history.

CAROLYN GUSOFF: But across the country, many see SALT deductions as a tax break for the rich and the 2017 change as a closing of a loophole. Crediting the increase in the standard deduction for offsetting the pain. But this bipartisan caucus pushing back against that notion.

- It's about helping the middle class. My district. Teachers, firemen, cops, small business owners. The average real property tax bill on my block on Long Island, is $15,000 a year.

CAROLYN GUSOFF: Suozzi's goal is a deal by July 4th. The White House has said it's happy to hear advocates ideas, if they propose a way to pay for it. On Long Island, Carolyn Gusoff, CBS2 news.

- No response yet from the two New York Democrats who did not join colleagues to call for the SALT cap repeal. Kathleen Rice and Alexandria Ocasio-Cortez did not sign that congressional letter.