HONESDALE, PA — The U.S. Senate’s version of tax reform was unveiled on November 7, and it would eliminate all state and local tax (SALT) tax deductions from federal income tax bills. The House version would have allowed $10,000 in property-tax deductions. The reaction from politicians came quickly.

PA Sen. Bob Casey released a statement that said, “By going further than the House of Representatives and fully ending the deductions for state and local taxes, the latest version, released by Senate Republicans, is a direct attack on over 1.5 million Pennsylvania households who claim this deduction; meanwhile it contains massive tax giveaways to the wealthiest and biggest corporations.”

He said, “The Joint Committee on Taxation has found that under the House Republican version of this scheme, in 2019 almost 30% of Americans making between $40,000 and $50,000 a year will see a tax increase or a tax cut of less than $9 a month.”

PA Sen. Pat Toomey came out on the other side of the issue. In recognition that most analysts are saying that the proposed Senate income tax would hit higher-taxed urban and suburban areas harder that rural areas, Toomey essentially said that’s the way it should be. He told syndicated radio host John Catsimatidis, “There’s no good reason why federal taxpayers all across the country should have to subsidize, have to pay a higher federal tax rate, to subsidize those municipalities that choose to have high taxes.”

In New York, at a rally on November 12, Sen. Kirsten Gillibrand noted that with a wave of public opposition, Congressional Democrats were able to defeat the repeal of the Affordable Care Act three times. She said, “We must do the same to defeat this tax plan.”

Sen. Chuck Schumer said in a statement, “Republicans should go back to the drawing board and fully restore the SALT deduction.”

Congressman John Faso, who represents Sullivan County and beyond, announced that he will host a series of events to get local input on the tax. He said in a press release, “It is critical that I continue to receive input from local residents, elected officials and business leaders, as we work to fix our broken tax code.

“Conference calls have been scheduled with local Chambers of Commerce leaders to discuss the prospective impact on their businesses, with local elected officials and community leaders to discuss the prospective impact on local communities and governments, and one that is open to all residents of New York’s 19th District.”

Gareth Rhodes, one of six Democrats vying for the opportunity to run against Faso next year, issued a press release criticizing Faso for not taking a stand on the issue. “The tax plan that the House is expected to vote on this week is an enormous handout to uber-wealthy Americans and big corporations, paid for by tax increases for working people here in the Hudson Valley and Catskills. Many House Republicans have displayed the courage to say no to this disastrous bill, but here in NY-19 John Faso has been absent and silent.”

Congressman Tom Marino, who represents Wayne and Pike counties and beyond, did not issue any statement regarding the tax proposals.

At press time, a vote in the House on that version of the legislation was expected to take place on November 16.