Four of New York’s nine-member Republican congressional delegation to Washington, D.C., voted in favor of eliminating the popular state and local tax deduction that saves money for 35 percent of state taxpayers. The deduction allows them to avoid paying federal taxes on income they have already spent on local and state taxes, typically property and income taxes.
Due to the unpopularity of the measure, the vote will likely have political repercussions for lawmakers who voted for it, but also for those who oppose it – House Speaker Paul Ryan recently punished Long Island Rep. Lee Zeldin for his “no” vote by taking the proceeds from a fundraiser that was supposed to benefit Zeldin’s re-election campaign.
If lawmakers entirely repeal the state and local tax deduction, New York taxpayers who use it will pay taxes on an additional $22,169 in income on average, according to the nonpartisan and nonprofit Government Finance Officers Association.
The full repeal in the U.S. Senate plan would result in New Yorkers paying a total additional $17 billion in taxes, according to the organization’s calculations, which assume a 25 percent average marginal tax rate for all taxpayers. But estimates for a partial repeal, as laid out in the House bill or in some other form, are currently unavailable.
Here's a look at how much each taxpayer who uses the SALT deduction could lose if it's fully repealed, assuming the same 25 percent average marginal tax rate:
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District 1
Rep. Lee Zeldin
Voted: No
Percentage of taxpayers who use the SALT deduction: 46%
Average amount they’d stand to lose per year: $4,421.38
District 2
Rep. Peter King
Voted: No
Percentage of taxpayers who use the SALT deduction: 48%
Average amount they’d stand to lose per year: $5,027.66
District 11
Rep. Dan Donovan
Voted: No
Percentage of taxpayers who use the SALT deduction: 36%
Average amount they’d stand to lose per year: $3,442.19
District 19
Rep. John Faso
Voted: No
Percentage of taxpayers who use the SALT deduction: 31%
Average amount they’d stand to lose per year: $3,125.25
District 21
Rep. Elise Stefanik
Voted: No
Percentage of taxpayers who use the SALT deduction: 23%
Average amount they’d stand to lose per year: $2,966.34
District 22
Rep. Claudia Tenney
Voted: Yes
Percentage of taxpayers who use the SALT deduction: 23%
Average amount they’d stand to lose per year: $2,691.41
District 23
Rep. Tom Reed
Voted: Yes
Percentage of taxpayers who use the SALT deduction: 22%
Average amount they’d stand to lose per year: $2,929.02
District 24
Rep. John Katko
Voted: Yes
Percentage of taxpayers who use the SALT deduction: 29%
Average amount they’d stand to lose per year: $3,035.08
District 27
Rep. Chris Collins
Voted: Yes
Percentage of taxpayers who use the SALT deduction: 29%
Average amount they’d stand to lose per year: $3,031.33
Source: Government Finance Officers Association