President Donald Trump’s “One Big Beautiful Bill Act,” which narrowly passed through the House of Representatives early Thursday morning in a 215 - 214 vote, includes an increase to the SALT — State and Local Tax — deduction, quadrupling the cap from $10,000 to $40,000 and phasing it out for incomes over $500,000.
Malliotakis has been a vocal proponent for raising the SALT cap, initially calling for a $30,000 deduction before successfully pushing for an additional $10,000 to bring the cap to $40,000.
The SALT deduction allows households to deduct what they pay in state and local income and property taxes from the amount of their income that is subject to federal taxes, meaning homeowners with hefty property taxes would have to pay less to the federal government.
“This truly benefits the people of Staten Island and Brooklyn , like the homeowners who are with us today,” said Malliotakis, a Republican who represents Staten Island and South Brooklyn . “It could save the average family on Staten Island thousands of dollars a year.”
The $40,000 cap and $500,000 income phaseout would increase by 1% annually from 2026 through 2033, according to the legislation.
“We put a safeguard in there because our focus has always been the middle class, the people that live on Staten Island : Our teachers, our firefighters, our police officers, our nurses; true working-class people,” Malliotakis said of the cap. “So, when some people are saying that we’re fighting for the billionaires… it’s just simply not true. We focused this specifically on the middle class.”
The legislation, which still needs to be approved by the Senate , would also temporarily boost the standard deduction to $16,000 for single filers and $32,000 for joint filers, and provide an additional temporary increase in the standard deduction for seniors.
Malliotakis said that should the updated SALT deduction pass through the Senate , the alterations “cover 98% of the families” that she represents.
“We want to make sure that as the cost of living continues to rise, that we’re able to help homeowners keep a little bit more money in their pockets, and that’s what this SALT deduction restoration is going to be doing. It’s going to allow folks to better afford the homes they already have,” said Carr, the GOP Mid-Island councilmember.
“It’s a big, beautiful day, and it’s easy to see why,” Morano said.
Morano, a Republican, is the newest councilmember on Staten Island — winning former Councilmember Joseph Borelli’s South Shore seat in an April special election against Democratic candidate Cliff Hagen and fellow Republican candidate Griffin Fossella .
“The whole reason I ran for City Council in the first place is because I want my son to want to live here when he’s an adult. The thing that kept coming up throughout the campaign again and again is that people who’ve raised their children here, that grew up here themselves, can’t afford to stay here because of the taxes. This is a huge win in allowing Staten Islanders to stay on Staten Island ,” Morano said.
Fran and Frank Reali of Better Homes and Gardens Real Estate Safari Realty , who hosted Tuesday’s event, said the changes would benefit both businesses and residents alike.
“I’m thrilled to be able to get this information out about SALT,” Fran Reali explained. “It’s a nice thing and will hopefully be a good boost for real estate and, of course, for the consumer to be able to feel some relief — and relief is what everybody needs. The pressure has been, in my opinion, very, very difficult.”
The bill needs to pass the Senate before it can be signed into law by Trump, and could face revisions along the way. The bill itself has been the topic of much controversy, as it looks to cut the Supplemental Nutrition and Assistance Program, SNAP, by $267 billion over the next decade; seeks to axe tax credits for clean energy, and cuts almost $700 billion in Medicaid funding.
Republican supporters of the legislation have characterized the cuts as rooting out fraud and waste. All told, the nonpartisan Congressional Budget Office estimates 8.6 million fewer people would have health care coverage over the next decade and 3 million less people a month would have SNAP food stamps benefits with the proposed changes.
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