VESTAL, NY (WSKG) – Governor Andrew Cuomo calls new federal rules on state and local tax, or SALT, deductions an economic assault on New Yorkers.
“The IRS should not be used as a political weapon,” Cuomo said in a written statement. He said New Yorkers are being used as ATM’s.
The U.S. Treasury Department issued final rules that target taxpayers trying to circumvent a new cap on SALT. New York State tried to create one of these work arounds by expanding credits for some charitable contributions.
SALT was limited in the Tax Cut and Jobs Act that passed in 2017. It capped what people could deduct on their federal return to $10,000 dollars. It’s been a point of contention in higher-tax states like New York, New Jersey and California, especially among wealthier residents.