Schumer wants IRS to back down from challenging new state tax lawPosted: Updated:
U.S. Sen. Charles Schumer called out the Internal Revenue Service Monday over a pending decision that could cost taxpayers thousands of dollars a year.
"The reason people pay more for a home here is not just because they want to pay more, it's because the schools are great, the quality of life is great, it's one of the finest places to live in all of America," said Schumer, standing in solidarity with Westchester residents hit hard by the Tax Cuts and Jobs Act that caps state and local tax, or SALT, deductions at $10,000.
A new state tax law would alleviate some of that pressure on Hudson Valley homeowners by turning tax payments into charitable donations, which aren't capped. But the IRS has threatened to disallow that move.
Schumer released a letter sent Monday to the IRS, imploring the federal agency to reconsider. He also went a step further, threatening to pull his support of the new nominee for the head of the IRS.
"I am going to tell him I cannot look favorably on his nomination unless he will allow New York and many other states to continue doing what they are doing," he said.
Schumer said the IRS never weighed in on the states already providing similar incentives and instead unfairly targeted New York residents.
Homeowners said they are hopeful the state law will stand in Westchester, a county where the average property tax bill is $16,000 a year.