New York State has joined a multistate coalition in filing a petition for certiorari, or an order where a higher court reviews a decision of a lower court, so that the U.S. Supreme Court would hear an appeal against the $10,000 State and Local Tax deduction cap.

Part of the Trump-led 2017 Tax Cuts and Jobs Act, the SALT cap limits the deductions people can take on their federal taxes.

Working together on the appeal effort in the Empire State are state Attorney General James and Gov. Hochul.

“This unfair cap has already placed a significant financial burden on countless hardworking, middle-class families in New York, and in the years to come, it is expected to cost New York taxpayers more than $100 billion,” said James in a statement on Monday. “We filed this lawsuit to protect millions of New Yorkers from this harmful, misguided, and blatantly political attack. New York will not be bullied into paying more than its fair share, and we will continue to fight back.”

Hochul said the cap is “nothing less than double taxation on New Yorkers.”

“Repealing the SALT cap would not only put more money into the pockets of New York families, it would deliver a much-needed boost to New York’s economy,” said the governor on Dec. 3. “We are taking this issue to the Supreme Court to continue to fight on behalf of New York taxpayers.”

Hochul also tweeted last year that New York is the top donor state and deserves a repeal on the SALT deduction cap.

“A repeal of the SALT cap would bring relief to New York taxpayers and our state economy,” posted Hochul.

U.S. Rep. Tom Suozzi (D-Nassau, Suffolk, Queens) — a gubernatorial candidate running against the governor on the Democratic ticket — tweeted that Hochul was “late” to the SALT repeal party with her appeal efforts earlier this week.

“Hopefully, [Hochul] will finally be getting serious about SALT,” posted Suozzi. “I know taxes in [New York] are crushing families, that’s why I’ve been leading the charge on repealing the cap since 2017.

“It’s still ... No SALT, no deal!”

Hochul pushed back by sharing a Dec. 16, 2017 report from WXXI News to the Queens Chronicle that quoted her as being vehemently opposed to the cap.

“This façade, this charade of saying this is for the middle class; this will not help the middle class individuals whatsoever,” Hochul said in the report less than five years ago.

One Democrat who is against the lifitng the SALT deduction cap is U.S. Rep. Alexandria Ocasio-Cortez (D-Bronx, Queens).

In the spring of 2021, Ocasio-Cortez said a repeal of the cap would be a “giveaway to the rich” and a “gift to billionaires,” according to Business Insider.

Ocasio-Cortez was not immediately available for comment.

The Committee for a Responsible Federal Budget believes that repealing the SALT for two years, an initiative led by Suozzi, would negate some potential gains of President Biden’s proposals to hike taxes on the rich.

The repeal would reduce taxes on the top 5 percent by $70 billion in fiscal year 2023, according to a CRFB analysis made October 2021. That would be a $30 billion net direct tax cut for the top 5 percent in the country. The magnitude of savings for the top 1 percent was immeasurable, CRFB said.

An alternative to repealing the cap flouted by Congressional Democrats in November 2021 was to lift it to $80,000, which could benefit middle-class families and support Biden’s tax plan, according to U.S. Sen. Chuck Schumer (D-NY) last year.

U.S. Sen. Bernie Sanders (I-Vt.), however, called for a repeal for families making under $400,000, last November.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.