Gov: Hike is bad biz for N.Y.ers

ALBANY — Gov. Cuomo said Thursday that President Trump’s tax cut plan is actually a tax hike for many New York residents that could drive people and businesses out of the state. Cuomo’s office released an analysis of the impact of one proposal in the President’s plan — the push to eliminate the deductibility of state and local taxes. In New York City, the 1.1 million residents who claim the deduction would see an average tax increase of $7,134, according to the analysis of 2014 personal income tax filings. Statewide, Cuomo’s tax office said that taken alone, the change would result in an average $5,298 tax increase for the 3.3 million taxpayers who claim the deduction on their federal tax returns. Digging deeper, the analysis shows that eliminating the write-off would result in an average $1,299 tax increase for those making between $50,000 to $100,000 and a $2,688 average hike for those earning between $100,000 and $150,000. Those making between $150,000 and $200,000 would see their taxes go up by an average $4,300 while taxes on those making between $200,000 and $300,000 would rise by $46,944. The wealthy would be hit even harder. All told, the elimination of the provision would cost New Yorkers more $17.5 billion combined, Cuomo said. “This plan puts corporations over people and billionaires over the middle class,” Cuomo said. “And rather than cutting taxes for hard-working Americans, it would tax them on the taxes they are already paying.” Even some of Trump’s staunchest allies in the state expressed concern. Rep. John Faso (R-Kinderhook) said, “Tax reform is important in order to grow the economy” but “I remain opposed to eliminating the deductions for state and local taxes as this would represent, in effect, double taxation on the taxes paid to state and local governments.” Another Trump ally, Rep. Chris Collins (R-Erie County), said, “Updating our nation’s tax code will be one of the most important accomplishments we will see under President Trump” — but his office declined comment on the elimination of the tax deduction.