In the News

U.S. Rep. Mike Lawler’s bill to double the deductibility of state and local taxes for married couples is the latest attempt by a New York political leader to either undo or soften the impact of Trump-era tax reforms that have penalized homeowners in high-tax states like New York.

Lawler’s bill to make the state-and-local-tax deduction cap – known as the SALT cap – more palatable comes two years before the $10,000-limit on SALT deductions, and the accompanying tax cuts for individuals and businesses passed in 2017, will expire at the end of 2025.

Lawler, R-Pearl River, said the bill would eliminate what he calls the “marriage penalty” in the current regulations. The regulations allow single filers to deduct $10,000 in SALT payments from their taxable income. But married couples filing jointly have the same limit. If married partners file separately, they can only claim $5,000 each...