SCHUMER: ROCHESTER FINGER-LAKES HOMEOWNERS IN TAX JEOPARDY AS U.S. TREASURY SECRETARY SUGGESTS REDUCTION IN MORTGAGE INTEREST AND STATE & LOCAL PROPERTY TAX DEDUCTIONS; WOULD HIT ONTARIO COUNTY PARTICULARLY HARD; SENATOR PLEDGES TO USE NEW ROLE TO FIGHT ANY EFFORTS THAT WOULD PICK THE POCKETS OF ALREADY-STRAPPED TAXPAYERS & HOMEOWNERS
Standing With Ontario County Homeowners, Schumer Pushes To Keep In Place Vital Federal Deductions that the Rochester Finger-Lakes Region Depends On; Pledges Major Fight
Ontario County Homeowners Have Expressed Serious Worries With Secretary Mnuchin & Future Of Critical Deductions; Schumer-Backed Deductions Help Rochester Finger-Lakes Families Pay Mortgage, State & Local Taxes
Schumer: Rochester Finger-Lakes Homeowners Cannot Afford A Giant Tax Increase Courtesy Of The Feds
Standing with Victor, homeowners and amidst rising local anxiety, U.S. Senate Minority Leader Charles E. Schumer today launched a push to preserve popular, but increasingly at-risk, tax deductions that Victor homeowners and taxpayers depend upon to keep Ontario County’s cost of living in-check. Whether new Ontario County 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 the Rochester Finger-Lakes region particularly hard, given local cost of living and higher local property tax burden. From 2011 to 2014, according to the Tax foundation, the median property tax bill paid in Ontario County and Monroe Counties are $3,446 and $4,245 respectively. 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 Rochester Finger-Lakes region homeowners and taxpayers. The senator 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 Rochester Finger-Lakes 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 Ontario 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 Rochester-Finger Lakes region. 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. The Tax Policy Center found that 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. 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.
“Taking away or reducing these deductions on federal tax returns would be brutally unfair and would hit Ontario 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 Victor homeowner Kathleen Draper.
“As a single parent raising a teenaged daughter, every dollar matters. I love my home and my community but the potential elimination or capping of the deductions for mortgage interest and state and local taxes on federal tax returns would be too much for homeowners like me. We should be making it easier for people to buy a home and raise a family here, not making it harder,” said Homeowner Kathleen Draper.
Schumer said that such a move could significantly impact residents in the Rochester Finger-Lakes region, and specifically Ontario County, where the rate for home ownership is almost 73 percent, and the property tax burden significant. Ontario County ranks in the top third of the highest property tax counties in New York and Monroe County ranks in the top 25 percent. For instance, according to 2015 data from the NYS Department of Taxation and Finance, the median residential home sale price in Ontario County was $161,500 and in Monroe it was $135,900. According to the Tax Policy Center, the average annual property tax burden was $3,446 in Ontario County and $4,245 in Monroe County 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. 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.
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