Cuomo’s Tax Workaround
Governor Cuomo has announced plans to push back against what he calls the “unjust” federal tax reform — including suing the federal government on the law’s constitutionality. The new law will indisputably affect a small number of highly-compensated New Yorkers who provide a disproportionate share of the state’s tax revenue. Tinkering with the state’s tax code, as Cuomo is doing, may be the appropriate solution to protect taxpayers, but Albany should proceed with caution to ensure that any changes are as seamless as possible.
The Facts You Need to Know
The PITs: Converting the state from a personal-income tax system to an employer-paid payroll tax system would be massively complex and costly. Read more.
Impact: Most New Yorkers will not be affected by the new law’s elimination of state and local tax deductibility. Read more.
Sweet Charity: A proposal to turn property- or income-tax payments into a form of charitable-trust donation may face challenges from the Treasury Department. Read more.
“Residents of New York City pay the second-highest state-and-local taxes in the country — exceeded only by California’s 13.3 percent.”
"This is a bill that passed in the dead of night, this is a bill with the least transparency." Cuomo says of federal tax law. Sounds familiar to what happens in NYS gov't twice a year.— Dan Clark ? (@DanClarkReports) January 26, 2018
The Past is Present
“Rich in every other advantage, New York State’s economy withers under a thirty-year tax blight. It’s time to reverse the tax-and-spend plague now.”
And in other news...
“City Councilman Ydanis Rodriguez pleaded guilty Wednesday to disorderly conduct stemming from a rowdy immigrant rights protest last month.”