Hochul’s Tax Policies Harm NY While She Opposes SALT Relief

This past weekend, I had the chance to meet with President-elect Donald Trump and fellow Congress members from states such as California, New York, and New Jersey to emphasize the need to lift or repeal the SALT cap, which unfairly limits the state and local taxes that can be deducted from our federal income tax returns.

Our conversation was productive, with the president reaffirming his support for raising the cap, while also stressing the necessity for states like New York to rein in their excessive spending.

And he is absolutely correct.

Since Kathy Hochul took office in 2015, New York’s state spending has surged by nearly $90 billion.

That’s right: $90 billion — a staggering 59% increase in just nine years.

Under Hochul’s gubernatorial leadership, this escalation has accelerated. From FY2021 to FY2025 alone, spending has skyrocketed by more than $61 billion.

This leads to New York state holding the top spot for the highest combined state and local tax burden on residents. On average, New Yorkers contribute 12% of their income in state and local taxes.

Particularly hard hit by the state’s inflated spending are the residents of the Hudson Valley and Long Island.

In 2022, Hochul and the Democratic leaders in Albany increased the payroll mobility tax to address the MTA’s financial issues.

Now, they are preparing to do it again, targeting small businesses with new tax increases at a time when many are barely making ends meet.

And the tax burden doesn’t stop there.

New York is also among the top 10 for state and local sales taxes, averaging about 8.5% on most purchases.

So, every time you grab a soda or a pack of gum at the convenience store, you’re sending more money to Albany.

Have a cell phone? You’re taxed for that as well! New York ranks fourth in state and local tax burdens on wireless services.

If you happen to place a bet on the Bills, Jets, or Giants, and manage to win, brace yourself — New York would tax your winnings at a staggering 51%, the highest rate in the country.

Made a smart trade on the stock market a couple of years ago, as Nancy Pelosi often seems to do? If you decide to sell that investment, New York will claim 10.9% of your profits.

New York is imposing heavy taxes on us at every turn.

This is exactly why we need to address the out-of-control taxation policies enforced by Kathy Hochul and the Democratic leaders in Albany.

Reform is necessary, and we need it now. By 2026, I am hopeful we can achieve this by electing a new governor.

However, in the interim, Hochul’s reckless spending should not deter President Trump and our Republican majorities in the House and Senate from agreeing to reasonable adjustments to the SALT cap.

I’ve put forth legislation to raise the cap to $100,000 for single filers and $200,000 for married couples.

This change would encompass the vast majority of New Yorkers and significantly benefit middle-class families in my district, across the Hudson Valley and beyond.

Hochul appears to be opposed to this proposal — taking to X to label my bill, which would provide immediate tax relief to over 90% of New Yorkers, a “failure.”

No, Governor, the real failure is you, sitting in Albany’s executive offices like Nero in Rome — observing the state’s decline and adding fuel to the flames.

In 2026, New York’s voters will seek real accountability for Hochul’s mismanagement of our state, its budget, the MTA, and more.

And that day cannot come soon enough.

Republican Mike Lawler represents New York’s 17th Congressional District.