Efforts for Tax Relief in High-Cost Areas

Democratic Rep. Laura Gillen from Long Island and Republican Rep. Mike Lawler from the Hudson Valley are seeking to bridge their political differences to help residents in New York and other areas with high taxes.

The proposal, known as the Cost of Living Tax Cuts and Jobs Act, aims to adjust income tax brackets according to regional cost of living variations.

“Our tax system is fundamentally unfair,” Gillen commented. “For instance, earning $75,000 in a low-cost region like Mississippi feels much different than that same income on Long Island, where it’s challenging to get by.”

She added that the bill’s goal is to ensure equitable tax brackets for people living in high-cost areas, preventing them from being unfairly burdened.

This legislation requires the federal government to use the Department of Commerce Regional Price Parity Index to create a formula for adjusting federal income tax thresholds, rounded to the nearest $50.

According to Gillen’s office, residents on Long Island earning $105,000 annually could see a federal tax savings of up to $1,100.

The Democratic representatives stress that the bill is necessary since New Yorkers have consistently contributed more in federal taxes than they receive.

Living costs on Long Island exceed the national average by about 32%, as per Gillen’s office. For instance, the average home price in Nassau County is $850,000, which is more than double the national average of $412,000.

Both Gillen and Lawler are navigating contested seats in the upcoming 2026 midterm elections and have a history of collaborating on bipartisan legislation.

They are particularly focused on increasing the state and local tax deduction (SALT) cap, with Lawler advocating for its inclusion in the significant legislation signed by President Trump last year.

“Families in the Hudson Valley deal with some of the highest living costs in the nation,” Lawler asserted. “This legislation acknowledges these financial realities and works to ensure that taxpayers in costly regions like New York aren’t unfairly penalized just for where they reside.”

While the bill faces significant hurdles in Congress as elections loom, both representatives hope it will bring attention to the issue.

“Every bill I’ve introduced this Congress has had Republican support,” Gillen stated. “I think collaborating is key for getting a meaningful bill to the floor.”