Standing With Saratoga County Homeowners, Schumer Pushes To Keep In Place Vital Federal Deductions Capital Region Depends On; Pledges Major Fight
Saratoga County Homeowners Have Expressed Serious Worries With Secretary Mnuchin & Future Of Critical Deductions; Schumer-Backed Deductions Help Saratoga County Families Pay Mortgage, State & Local Taxes
Schumer: Capital Region Homeowners Cannot Afford A Giant Tax Increase Courtesy Of The Feds
New York – (RealEstateRama) — Standing with Saratoga County homeowners and amidst rising local anxiety, today U.S. Senate Minority Leader Charles E. Schumer launched a push to preserve popular, but increasingly at-risk tax deductions Saratoga homeowners and taxpayers depend upon to keep the Capital Region’s cost of living in-check. Whether new Saratoga 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 has suggested threats to mortgage, state and local property tax deductions. Schumer said reductions to—or the removal of these vital tax deductions—would hit Saratoga County particularly hard, given local cost of living and higher local property tax burden. The Tax Foundation reports that the median property tax bill paid in Saratoga County was $3,764 between 2011 and 2014. 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. Schumer pledged to fight any efforts that would rollback critical deductions used by Capital Region homeowners and taxpayers. Schumer explained why this fight is so critical to families across the region.
“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 Saratoga County homeowners. I hear you loud and clear and 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 Saratoga 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 the Saratoga County. It will also negatively impact both the regional housing market – driving down values—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 60 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. A Congressional Research Service analysis of IRS data found that, in 2012, over 86% of returns including a mortgage interest deduction were from those making $200,000 or less.
“Taking away or reducing these deductions on federal tax returns would be brutally unfair and would hit Saratoga County 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 was joined by Clifton Park homeowners Jennifer and Dan Jeram and their three children.
Schumer said that such a move could significantly impact residents in Saratoga County, where the rate for home ownership is almost 71 percent, and the property tax burden significant. For instance, according to the Greater Capital Association of REALTORS the median residential home sale prices in Saratoga County was $273,900 in February 2017. According to the Tax Policy Center, the average annual property tax burden was $3,764 between 2011 and 2014 in Saratoga 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. Finally the Tax Policy Center, found that approximately 40 million households in the United States benefit from the mortgage interest deduction. According to Congressional Research Service analysis of IRS data, in 2012, over 86% of returns including a mortgage interest deduction were from those making $200,000 or less.