U.S. Senate Minority Leader Chuck Schumer announced on Long Island Monday a new workaround to the GOP tax plan that limited state and local property tax deductions for homeowners.
Schumer says the deductions disproportionately target higher-income states like New York and Connecticut.
New York lawmakers created a loophole for the federal tax changes. Homeowners could pay towards a charitable fund and claim less annual taxable income on their federal returns.
But the IRS blocked this workaround with new rules.
Schumer introduced a bill that would undo the regulation and allow states to use the charity loophole.
“I’m here to say on the heels of the nasty IRS decision to block New York’s workaround, we have a way to undo what they did.”
The bill would override the IRS rule, not create a new law. That means the Senate has to consider it. But it would still require bipartisan support in the Republican-controlled Senate.
