New York Gov. Andrew Cuomo threatened legal action after the U.S. Treasury Department and the Internal Revenue Service released proposed regulation that will block New York and other blue states‘ efforts to avoid the cap on state and local tax (SALT) deductions.
Last year, President Donald Trump signed into law the Tax Cuts and Jobs Act, which contains a provision limiting SALT deductions to $10,000.
Cuomo strongly opposed the federal tax law, particularly the cap on SALT deductions. He called it “disastrous” and “double taxation.” He also described it as “assault — an arrow pointed to the heart of New York.”
Cap on SALT Deductions Will Cost New York $14.3 billion per Year
On Friday, the governor reiterated that the federal tax law is raising taxes on New York and making the state less competitive. He pointed out that the cap on SALT deductions will cost the state $14.3 billion a year.
“We are already seeing evidence of its devastating toll on homeowners,” Cuomo said. He noted that the home sales in Westchester dropped by 18 percent in the second quarter, the biggest decline since 2011.
