SALT Repeal Also on Westchester’s Wish List
By Dan Murphy
The election of 2020 across America delivered a victory for Joe Biden and Kamala Harris, but it did not deliver the accompanying victories in Congress that democrats needed to implement any significant, widespread change advocated by some on the progressive left. Americans also voted for republicans in their respective House and Senate races, in what many define as a split decision.
“The “blue wave” prognosticators saw coming broke a mile from shore as voters rendered a split decision. The numbers so far tell the story: Joe Biden won the presidency in a nail-biter, with thinner majorities for House Democrats and Senate Republicans,” writes TwinCities.com.
President-elect Joe Biden and democrats across the country may be facing divided government, as the outcome of who controls the US Senate is still undecided, with two Georgia US Senate seats to be decided in a special election Dec 6. Currently, republicans hold a 50-48 advantage, and democrats need to win both Georgia senate seats to bring the US Senate to a 50-50 tie, in which Vice-President elect Kamala Harris would break any tie votes.
If Republicans win one or two of the Georgia senate seats, then Mitch McConnell remains the republican leader of the U.S. Senate. And if McConnell and republicans control the US Senate, then solving New York’s financial challenges become more difficult.
The two biggest financial hurdles that the State of New York, and Westchester homeowners need help from Washington DC on is a repeal of the SALT (State and Local Taxes) tax deduction, and a bailout to help close a $14 Billion State budget deficit from 2020 when COVID hit the Empire State hardest of any state.
Cuomo appeared on Morning Joe this week and said that New York State needed financial assistance from Washington DC to administer the upcoming COVID-19 vaccine. “Our country will have to do 330 million vaccines. After 8 months we only did 120 million COVID tests. He (Trump) has given the states no money and no resources…We’re broke, we never got a stimulus,” said Cuomo.
McConnell has always said that he opposes a “Blue State Bailout” for democratic majority states like New York and California. And McConnell certainly will not vote to repeal the $10,000 cap on State and local taxes that both he and former Speaker of the House Paul Ryan and President Trump passed in 2017.
Property taxes in Westchester remain the highest in the country, with almost all homeowners paying more than $10,000 per year in combined, local, school and county property taxes. For those Westchester homes valued at $1 Million or more, their average property tax bill is $30,000 per $1 Million in value. And for most Westchester families who own a home, they can no longer deduct any of their State income taxes because the $10,000 limit is reached with their property tax bill.
But the recent surge in interest in Westchester homes from families who can afford it moving out of New York City has resulted in an “I don’t care” attitude about what a home’s property taxes are. “COVID has certainly helped the Westchester real estate market, and at the same time, has hidden the reality of how high property taxes are in some communities. For some families, they just want to get out of the city at any cost,” said one local real estate agent.
Governor Cuomo would argue that a bailout from Congress for state governments that lost billions in revenue and had to pay for additional COVID costs are more urgent. Cuomo has delayed any significant cuts in the State budget in the hopes that President Biden would help with a bailout.
But President Biden will find any help for New York State or New Yorkers difficult, or impossible with a majority of republicans in the US Senate. That is why all eyes will be on Georgia, and their upcoming election for two US Senate seats that will decide if Mitch McConnell, or New York Senator Charles Schumer is the next Majority Leader.
Several local governments, and County Executive George Latimer, have presented budgets for 2021 with no property tax increase as one way to help Westchester homeowners. The Towns of Greenburgh, Yorktown and Harrison all have proposed 2021 budgets with a 0% tax increase, and combined with a 0% increase from County government, homeowners in those communities have no new tax bills coming until the spring when school budgets are presented.
