President Donald Trump’s newest budget proposal plans for a cap on state and local tax deductions for federal tax returns in place — even though it’s supposed to sunset in 2025.
Democrats have called the cap on deductions a double tax on blue states, like New York, that give much more to the federal government than what they receive back in services.
Long Island Congressman Tom Suozzi told Treasury Secretary Steve Mnuchin this week the cap drives wealthy people out of state.
“So a lot of lower- and middle-income people have to pay that burden. Or, as you suggest, they can cut the services for the local and state governments…thereby decreasing the quality of life in those states.”
Suozzi serves on the House Committee on Ways and Means. Last year, the House passed legislation that would repeal the cap on deductions. It awaits action in the Senate.
