Politics
September 28, 2017

GOP tax plan would deal huge blow to millions of New Yorkers by ending state, local property tax deductibility

President Trump’s tax reform policy is going to cost average New York taxpayers a pretty penny.

The President’s plan to simplify the tax code, unveiled on Wednesday, includes the elimination of state and local tax deductions on federal returns — a write-off used by more than 3 million residents in New York, already one of the top taxed states in the nation.

Thanks to Trump, a family living in the five boroughs making $75,000 a year will pay $1,800 more in taxes, according to a study conducted by City Controller Scott Stringer’s office in June.

Currently, taxpayers who itemize their returns can deduct the amount they pay in city and state taxes from their income before paying federal taxes.

President Trump is unveiling the GOP tax plan Wednesday.

President Trump is unveiling the GOP tax plan Wednesday.

(BRENDAN SMIALOWSKI/AFP/Getty Images)

President Trump’s tax reform policy is going to cost average New York taxpayers a pretty penny.

The President’s plan to simplify the tax code, unveiled on Wednesday, includes the elimination of state and local tax deductions on federal returns — a write-off used by more than 3 million residents in New York, already one of the top taxed states in the nation.

Thanks to Trump, a family living in the five boroughs making $75,000 a year will pay $1,800 more in taxes, according to a study conducted by City Controller Scott Stringer’s office in June.

Currently, taxpayers who itemize their returns can deduct the amount they pay in city and state taxes from their income before paying federal taxes.

Trump tax plan is business-fiendly, but murky for everyone else

A whopping 3.2 million people claim the deduction statewide, with 85% of those residents make less than $200,000 a year, according to state lawmakers.

Roughly 1.3 million taxpayers in the city will face higher tax bills — 60% of them low- and middle-income households, Stringer’s report notes.

Gov. Cuomo said losing the deduction will cost New Yorkers more than $17 billion — and he vowed to fight it.

“It would penalize this state,” he said.

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