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Lawler & Gillen Introduce Bill to Target Unfair Tax Burden on Families in High Cost of Living Areas

Washington, D.C. – 6/11/26… Today, Reps. Mike Lawler (NY-17) and Laura Gillen (D-NY-04) introduced the bipartisan Cost of Living Tax Cut Act to lower federal taxes for families on Long Island and other regions paying the highest costs of living in the country. Currently, families in high-cost areas pay the same income tax rates as those in more affordable areas. The legislation would lower taxes by creating a more equal tax system that adjusts federal tax brackets to reflect regional cost of living where it exceeds the national average.

“Families in the Hudson Valley face some of the highest costs of living anywhere in the country. Whether it's housing, childcare, groceries, or transportation, a dollar simply doesn’t go as far here as it does in lower-cost regions. This legislation recognizes economic reality and helps ensure taxpayers in high-cost areas like New York aren’t unfairly penalized simply because of where they live,” said Congressman Lawler.

“Long Islanders face some of the highest taxes and living costs in the country,” said Congresswoman Gillen. “Many hardworking families are pushed into higher tax brackets even as they spend more of their income on essentials like housing and childcare. This bipartisan bill would help lower taxes for families in high-cost areas by accounting for regional differences in the cost of living and ensuring taxpayers can keep more of what they earn.”

The federal income tax system treats every dollar earned in every part of the country the same, even though the cost of living in many metropolitan regions is significantly higher than the national average. As a result, middle-class families in high-cost areas are often pushed into higher tax brackets despite having far less real purchasing power than similarly situated families in lower-cost regions.

The Cost of Living Tax Cut Act would address this imbalance by adjusting federal income tax brackets based on regional cost-of-living differences. The legislation would also direct the Secretary of Commerce to collect objective, reliable data and publish a cost-of-living index for each statistical area to ensure these adjustments are based on transparent and consistent metrics. The bill would not raise taxes on any taxpayer and would not create any new federal programs.

Full text of the bill can be found here.

Congressman Lawler is one of the most bipartisan members of Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs.

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