Faso says he’ll vote ‘no’ on tax bill
GOP congressman cites elimination of state, local income tax deductions
KINGSTON, N.Y. » U.S. Rep. John Faso said Wednesday that he cannot support the House Republican tax reform proposal in its current form.
The Kinderhook Republican cited as a reason the bill’s elimination of deductions for state and local tax payments.
“I have consistently stated that my goals for tax reform are to increase economic growth, increase worker paychecks, incentivize small business investment and ensure New York families are better off,” Faso said in a statement emailed to the media. “Unfortunately, I do not believe the current tax bill being considered by the House meets all of these goals. As such, I will vote ‘no’ when the bill is considered in the House of Representatives tomorrow (Thursday).”
Faso said the bill’s removal of the federal deduction for state income taxes and the limit on deductions for local property taxes will affect New York families more severely than those in other states.
“While the full SALT (state and local tax) ... deduction for individuals is repealed, full deductibility will remain in effect for corporations and other business entities, thereby protecting taxpayers
in states like Texas, which rely more heavily on corporate taxes,” Faso said. “Since New York taxpayers already send over $40 billion more ... to Washington than we receive back in federal benefits and services,
we are not being subsidized by any state.”
The proposed tax reform — a different version of which is making its way through the Senate — would deeply cut corporate taxes, double the standard deduction used by most Americans, and limit or repeal completely the federal deduction for state and local property, income and sales
taxes. Taxpayers may now deduct the amount of their state and local taxes from the federal taxes.
An analysis by the nonpartisan Congress’ Joint Committee on Taxation found the Senate version of the tax bill actually would increase taxes in 2019 for 13.8 million households earning less than $200,000 a year. That group whose taxes
would be raised — about 10 percent of all U.S. taxpayers — would face tax increases of $100 to $500 in 2019, according to the analysis.
There also would be increases greater than $500 for a number of taxpayers, especially those with incomes between $75,000 and $200,000. By 2025, 21.4 million households would have steeper tax bills.
In his statement, Faso said most middle-income taxpayers in New York’s 19th Congressional District, which he represents, would receive tax cuts under the proposed House bill.
“However, the statewide impact of the proposal will dramatically and negatively impact state revenues as wealthier taxpayers and their businesses flee New
York state to lower taxed jurisdictions,” the congressman said. “These revenue reductions will ultimately hurt our district as the state’s tax base is further eroded.”
Faso said the state already is losing people due to the failure of Gov. Andrew Cuomo to reduce New York’s high tax burden and address the regulatory climate that is killing jobs and opportunity.