BUFFALO, N.Y. — Newly-proposed legislation would repeal the $10,000 cap on the State and Local Property tax deduction, a stipulation just recently imposed as part of the Republican tax reform plan.
"There's not a path, in my opinion, to get this to the finish line but I appreciate what Peter King is doing," Rep. Tom Reed, R-NY-23, said.
Reed said, in theory, he supports the bipartisan bill introduced by two of his New York colleagues.
"I'm not opposed obviously to reinstating the State and Local tax deduction but I don't want to lose the opportunity to highlight what I think is the root cause of the problem,” he said.
Wednesday on Fox Business News, Reed insisted the main issue facing states like New York are the high taxes they've brought about themselves.
"I think they're going to have to deal with it," he said. "I think they're going to have to deal with the spending, which drives the tax equation because that's the revenue side, so you have to get the expenses under control."
In a statement, Gov. Andrew Cuomo commended Democrat Nita Lowey and Republican Peter King for introducing the bill.
"Washington has launched a direct attack on New York State's economic future by eliminating full deductibility of state and local taxes," he said. "New York is already the number one donor state in the nation, paying Washington $48 billion more than we get back. The elimination of our SALT deduction devastates New York more than any other state and costs New Yorkers an additional $14 billion."
"Enough with the political theater,” Reed said. “Our people back home that we represent, they're not stupid. They know what the cause of this problem is and that is spending policy out of Albany which correlates to high taxes that are driving people out of our state for decades now.”
He is warning the governor and state legislature not to count on any policy reversal.
"When you have a budgetary deficit of $4 billion at our state capital this year for example, you're going to have tackle this problem once and for all," Reed said.
Various estimates put New York's deficit anywhere from $1 billion to $4 billion.