To the Editor:
Your lead article in January’s edition is misleading in one important respect. While it is true that the limitation of the SALT deduction to $10,000 disproportionately affects high-income taxpayers in high tax states, like New York, New Jersey and Connecticut, the same Tax Reform Act eliminated the AMT (Alternative Minimum TAX), disproportionately benefiting those same taxpayers. The net effect if any therefore is much less than envisioned in your article. The AMT elimination should substantially mitigate the effects of the SALT reduction on Westchester real estate prices.
Editor’s Note: While the writer is correct that the new tax law raises the threshold for the Alternative Minimum Tax (AMT), thus mitigating the effects of the elimination of SALT deductions for high income earners, it is our understanding that it does not affect those with modest incomes who happen to live in homes that have increased in value–hence in their assessments. There are homeowners of modest incomes along the side streets of Irvington, for example, whose property tax bills have doubled this past year while their incomes have remained unchanged. They’re the ones who will suffer for lack of a SALT deduction.