Democratic Representative Laura Gillen from Long Island and Republican Representative Mike Lawler from the Hudson Valley are joining forces across party lines in an effort to alleviate the tax burden on residents of New York and other high-tax regions.
Their initiative, known as the Cost of Living Tax Cut Act, proposes a reform in which federal income tax brackets would be adjusted to reflect the cost of living in various parts of the United States.
“Our tax system is inherently inequitable,” Gillen explained to The Post. “Earning $75,000 in a low-expense state like Mississippi stretches much further compared to the same income on Long Island, where it barely covers essential expenses.”
She emphasized that the bill’s objective is to ensure that residents in areas with higher living costs are not disproportionately taxed simply because of where they live.
This legislative proposal would require federal authorities to employ the Regional Price Parities indexes, developed by the Commerce Department, to devise a formula that adjusts federal tax thresholds, rounding them to the nearest $50 increment.
According to data from Gillen’s office, under this proposal, a Long Island resident with an annual income of $105,000 could potentially see a reduction of up to $1,100 in their federal tax obligations.
The Democrat’s team argued that the legislation is necessary because New Yorkers have historically paid more in federal taxes than they receive.
The cost of living on Long Island is roughly 32% higher than the national average, according to Gillen’s office. In Nassau County, which encompasses part of her district, the average cost of a house is $850,000, more than double the $412,000 national average.
Lawler and Gillen, who both represent competitive seats in the 2026 midterm elections, have teamed up on bipartisan legislation in the past.
The two have strongly advocated for increasing the state and local tax deduction (SALT) cap, which Lawler insisted on including in the One Big Beautiful Bill Act Trump signed into law last year.
“Families in the Hudson Valley face some of the highest costs of living anywhere in the country,” Lawler said in a statement. “This legislation recognizes economic reality and helps ensure taxpayers in high-cost areas like New York aren’t unfairly penalized simply because of where they live.”
The bill faces an uphill battle in Congress with elections nearing, but the two are hoping to raise awareness of the concept.
“Every piece of legislation that I’ve introduced in this Congress has been with a Republican co-sponsor,” Gillen explained. “I believe that our best chance of bringing good legislation to the floor is to try to get buy-in from the other side.”
