Senator Collins Votes to Block Scam to Allow Wealthy Individuals to Evade State and Local Tax Deduction Limit

Washington, D.C.—U.S. Senator Susan Collins released this statement following her vote opposing an attempt by Senator Schumer to overturn an IRS rule banning wealthy individuals from circumventing the cap on state and local tax deductions:

“Senator Schumer is trying to allow New York State to use a scam designed to allow wealthy individuals to evade the limit on the deduction of state and local taxes (SALT) altogether by contributing to phony charities run by state and local governments.  This is not fair to taxpayers in most other states, including Maine.   The answer to the SALT problem is to double the deduction from $10,000 to $20,000 to remove the marriage penalty.  Currently, each individual can deduct up to $10,000 in state and local taxes such as state income taxes, local property taxes, and vehicle excise taxes, but if two people marry, the deduction remains at $10,000, so financially, they are better off not getting married when it comes to the SALT deduction.  I am introducing legislation to remedy this problem.”