Cuomo ‘Tax Fairness’ Plan Would Counteract Loss Of Federal Deductions
New York Governor Andrew Cuomo has announced two proposals to help New Yorkers get around the federal tax changes that removed state and local tax deductions from the federal tax code.
Cuomo said the plan is in response to what looks like an attack on Democratic states. “The 12 states that get penalized by this law: all Democratic states, all states that Trump lost.”
The first proposal would shift the state income tax system to a payroll tax system. The employer would pay the payroll tax, but the employer can deduct it.
The second would allow local governments to set up charitable entities. Residents could pay their property taxes to the not-for-profits and get a charitable deduction for that amount.
“They are both designed specifically to avoid what the federal government is trying to do to us. They both require a major administrative overhaul of the tax code. But, it’s revenue neutral,” Cuomo said.
The governor estimated that the changes to the tax code will have a negative affect on 530,000 Long Island taxpayers.