A provision in the Tax Cuts and Jobs Act (TCJA), the federal tax law enacted in December 2017, capped at $10,000 the amount of salt and local tax (SALT) payments that could be deducted from federal income tax liabilities. The SALT cap poses a concern for high-tax states, such as New York, which is especially reliant on the personal income tax revenues from its high-income earners, many of whom experienced an effective tax increase.
E.J. McMahon, the Empire Center’s research director and a former deputy state tax commissioner, has been the leading voice in warning about both the impact of SALT repeal and New York’s dependence on its top-heavy PIT base. Some of his work on the subject is listed below.
- NY’s “heart attack” recovery – NYTorch, March 1, 2019
- Cuomo keeps pounding SALT – NYTorch, Feb. 11, 2019
- Squeezing NY’s golden geese – New York Post, Jan. 18, 2019
- Cuomo’s strange new attack on IRS – NYTorch, Sept. 10, 2018
- More on that flaky SALT suit – NYTorch, July 20, 2018
- A salt cap surprise (so far) – NYTorch, July 17, 2018
- Another SALT work-around emerges – NYTorch, May 16, 2018
- Looking ahead to next year’s Tax Day – NYTorch, Apr. 16, 2018
- Schumer taps his own state – NYTorch, March 8, 2018
- The shape of watered-down SALT – NYTorch, Feb. 12, 2018
- New York’s SALT Substitute – City Journal, Jan. 26, 2018
- Cuomo’s stealth tax hike – NYTorch, Jan. 18, 2018
- Hunting for a new SALT shaker – NYTorch, Jan. 3, 2018
- The double-edged sword of prepayment – NYTorch, Dec. 28, 2017
- Little for NY in latest federal tax twist – NYTorch, Dec. 13, 2017
- The NY tax hike in Trump’s tax cut – New York Post, Nov. 3, 2017
- California Dreamin’ on SALT – NYTorch, Oct. 27, 2017
- SALT loss, upstate tax wound – NYTorch, Oct. 17, 2017
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