Senator Murphy Launches Petition to Protect Hudson Valley Property Owners
Albany, NY - Senator Terrence Murphy recognizes the tax overhaul legislation passed yesterday by the House of Representatives may have its benefits, but residents in the Hudson Valley- among some of the highest taxed areas in the nation - will see a double tax on some of the highest property taxes in the nation.
A major bone of contention between Democrats and Republicans is the fate of sales and local tax, known as "SALT". The new tax bill would eliminate most of the SALT deduction - which is worth $17.3 billion to 3.3 million New Yorkers. It would allow taxpayers to write off the cost of state and local property taxes, but only up to $10,000.
The proposed tax reform bill also provides benefits for the wealthiest Americans while delivering meager benefits to middle and working-class families that expire within five to ten years. Supporters of the bill insist it will help jump-start the economy and improve lives for middle-class families.
"The repeal of SALT in New York is the equivalent of driving a car off a cliff. Unfortunately, tax payers will be strapped in the back seat," said Senator Murphy. "Many residents count on getting some financial relief by deducting their state and local taxes. Cutting state and local property tax deductions down to $10,000 is virtually a drop in the bucket for most home owners in the Hudson Valley. This means home owners will wind up getting taxed twice."
Both the House and Senate versions of the legislation would cut the 35 percent corporate tax rate to 20 percent. Projected federal deficits would grow by $1.5 trillion over the coming decade.
The tax overhaul plan has also made New York home buyers skittish. Brokers say buyers are worried the proposed changes will increase the cost of owning many residential properties, setting the stage for a downturn in the market. Many fear that if this legislation passes, New Yorkers will flee to states like Florida, where there is no income tax or other states with more reasonable taxes.
The last major overhaul of the tax code in 1986 was a lengthy negotiation between both parties that passed with bipartisan support.
Senator Murphy is urging all property owners to sign the petition, which will be sent to House Speak Paul Ryan and Senate Majority Leader Mitch McConnell, imploring them to keep Washington from double taxing hardworking families.