Standing With Bayberry Community Homeowners In Liverpool, Schumer Pushes To Keep In Place Vital Federal Deductions Central New Yorkers Depend On; Pledges Fight
Onondaga County Homeowners Have Expressed Serious Worries With Secretary Mnuchin & Future Of Critical Deductions; Schumer-Backed Deductions Help Syracuse Families Pay Mortgage, State & Local Taxes
Schumer: Syracuse’s Hard-working Homeowners Struggling to Make Ends Meet Cannot Afford A Large Tax Increase Courtesy Of The Feds
New York – (RealEstateRama) — Standing with Bayberry Community homeowners in Liverpool, NY, and amidst rising local anxiety about looming changes to tax policy that could hurt homeowners, U.S. Senator Charles E. Schumer today launched a push to preserve popular, but increasingly at-risk tax deductions: the mortgage interest deduction and the state and local property tax deduction.
“Hardworking Central New York homeowners and taxpayers depend upon these vital and fair deductions to make ends meet and keep Central New York’s cost of living in-check,” said Schumer.
Whether new Central New York homeowners, longtime owners, or those looking to buy right now, Schumer said locals are in tax jeopardy as newly-confirmed U.S. Treasury Secretary Mnuchin and many Republicans in Congress have suggested limiting or eliminating the mortgage interest and, state and local property tax deductions. Schumer said reductions to—or the removing these vital tax deductions—would hit Central New York particularly hard, given the burden local taxes put on homeowners and residents. Schumer pledged to fight any efforts that would rollback critical deductions used by Central New York homeowners and taxpayers.
“Central New Yorkers have sounded the alarm about preserving both the mortgage interest and state – and-local tax deductions – vital policies that keep the local cost of living in check for Central New York homeowners. I hear you loud and clear and I will aggressively fight any push to kill these fair and vital tax deductions that benefit and build the American middle class,” said U.S. Senator Charles Schumer. “Treasury Secretary Mnuchin and many in Congress, especially in the House, just do not understand the critical need for federal tax deductions that Onondaga County homeowners depend on. Eliminating, or even reducing, these deductions would hurt hardworking homeowners right off the bat, and it would dissuade those looking to purchase a home in Central New York. It will also negatively impact both the regional housing market – driving down value—and the overall economy. I will use my clout in the Senate to fight all efforts that would roll back the critical mortgage-interest deduction and the state and local property tax deductions.”
Under the current federal tax system, taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes as well as either income taxes or general sales taxes. State and local income and real estate taxes make up approximately sixty-percent of local and state tax deductions while sales tax and personal property taxes make up the remainder. According to the Tax Policy Center, approximately one-third of tax filers itemize deductions on their federal income tax returns. The mortgage interest tax deduction allows borrowers to deduct the interest paid on their home loans from their income taxes. Homeowners who itemize their taxes can deduct mortgage interest payments on up to $1 million for married couples and $500,000 for those filing separately. According to the Tax Policy Center, approximately 40 million households in the United States benefit from the mortgage interest deduction.
“Taking away or reducing these deductions on federal tax returns would be brutally unfair and would hit Central New York homeowners right between the eyes. It is exactly the wrong thing to do if we are serious about helping to build and expand the middle class,” added Schumer.
Schumer said that such a move could significantly impact residents in Onondaga County, where the rate for home ownership is 65 percent and the property tax burden significant. For instance, according to the NYS Department of Taxation and Finance, the median residential home sale price in Onondaga County was $136,975 in 2015. According to the Tax Policy Center, between 2007-2011, the average annual property tax burden was $3,383 in Onondaga County. According to the IRS, in 2014, approximately 1.9 million New Yorkers filed for the mortgage interest deduction each year and 2.37 million New Yorkers filed for the real estate tax deduction.