New Laws Raise Minimum Wage; Cut Taxes, Business Costs

December 27, 2018.  Several new laws effective Jan. 1 will impact family budgets while trying to improve New York State’s business climate.

“Given the damaging and destructive tax and budget policies coming out of Washington that seem to target poor and working class families, it’s good to know that our state has some countermeasures in place that actually help struggling New Yorkers,” said Ron Deutsch of the Fiscal Policy Institute, a labor-backed group that lobbies for the working poor.

 

Access to Full Article HERE

Kentucky Advocate Says DREAM Act Would Boost Local, State Economy

December 22, 2017. This article and radio interview discusses the tax revenue effects that the termination of Deferred Action for Childhood Arrivals Program (DACA) could create if a permanent solution is not passed by Congress. DACA gave undocumented immigrants who were brought to the United States at children the authorization to work and go to school, as well as the protection from detention or deportation. This article use FPI’s data and argues that DACA allowed this immigrant population to support the economy and if a solution is not implemented, they will be working jobs with lower wages.

Kentucky’s 6,000 Dreamers — people eligible for the now-rescinded Deferred Action For Childhood Arrivals, or DACA program — contribute $8 million in local and state taxes annually, according to the Fiscal Policy Institute. That includes sales, property and income taxes.

“Dreamers are important to our community,” said Baumann. “They go to school with our kids, they are working in our local economy, they’re going to college, they’re helping out their families and their neighbors. They’re just like the native born Kentucky young people that we know who are so important to our communities and our economies.”

Here is the link to the full interview.

The Dream Act Would Boost New York’s Economy

The Dream Act Would Boost New York’s Economy

December 20, 2017. On September 5, 2017, the Trump administration announced that it would revoke the Deferred Action for Childhood Arrivals (DACA). This program provided immigrant youth who are currently undocumented and arrived in the United States before the age of 16, work authorization, protection from deportation and the sense of security of being able to live a life like everyone else in the place they call home.

It only took a matter of minutes for the Trump administration to negatively affect the lives of 1,300,000 DACA-eligible youth in the United States. In New York State, 76,000 of these immigrant youth are our neighbors, students, friends and family. Each day approximately 122 individuals lose their DACA status and the fear of detention or deportation to a country foreign to them is instilled.[1]

The Dream Act would fix the problem that Trump created, yet asked Congress to solve. The Dream Act would provide work authorization and a clear pathway to citizenship for Dreamers.

While the primary beneficiaries would be Dreamers themselves, the Dream Act would also help the overall economy flourish. New York has a large economy with a $1.5 trillion state gross domestic product. Passing the Dream Act would boost that by $1.8 billion annually, according to a report by the Fiscal Policy Institute based on analyses by the Center for American Progress and the Institute on Taxation and Economic Policy. That’s a modest but indisputably positive economic repercussion of doing right by these immigrant youth. It’s also a conservative estimate: with the passage of the Dream Act, young immigrants’ contributions would likely increase by considerably more as they enroll in college and obtain higher education degrees that allow them to work in different jobs. If half of the eligible population takes this path, the annual increase to New York State GDP is estimated at $5.8 billion .[2] And, while it’s difficult to predict what businesses Dreamers might start, it’s worth bearing in mind that immigrants and their children are responsible for the creation of 43 percent of America’s Fortune 500 companies.[3]

Dreamers already contribute to state and local tax revenues. Through property tax, sales tax, and income tax, Dreamers are currently responsible for $115 million in New York state and local tax revenue. With the termination of DACA, the state can expect to lose at least $43 million. That’s assuming that the immigrant youth who received DACA stay in the state, continuing to pay sales taxes and pay the rent that helps owners pay property taxes. Income tax compliance would, however, likely decline. The hit to tax revenues would be considerably higher if these young people were all deported—$115 million, not including the costs of disruption of the workplace and families, or the expense of enforcement needed to carry out mass deportations.

If Congress passes the Dream Act, in addition to an increase in government revenue there will be an increase in government costs. These costs are for the most part investments for economic growth and the health of our communities, such as higher education and medical coverage. For both New York and the country as a whole, the Dream Act would be good for the economy, would raise revenue, and would entail added government expenses to improve future economic productivity and to help our communities to thrive.

It is worth noting that a recent report of the Congressional Budget Office (CBO) estimated at the federal level the costs would be higher than the increased revenues. But as Douglas Holtz-Eakin, the former director of the CBO, explained: that score “does not reflect the real policy choice,” since it compares the Dream Act to the status quo of March 2017 when DACA was still in place. “The real choice,” as he put it, “is between a legal netherworld with DACA suspended but deportations not yet being pursued and legal permanent resident status.”[4]

What’s most important, in the end, is that the Dream Act would place young immigrants on the same footing as all state residents, paying their fair share of taxes, receiving their fair share of services, and rising to the level of their potential.

Dreamers have gone through our American school system. Many have considered the United States their home from the time they first learned to talk. Many have been our neighbors for decades. It is good for them, and good for all of us, when immigrants are afforded the same opportunities as all other residents. Our success, together, will only make New York stronger.

FPI’s report about the positive impact of the Dream Act on New York, and information about parallel analysis for other states, is available here.

By: David Dyssegaard Kallick and Cyierra Roldan

[1] Top 5 Reasons Why the Dream Act Can’t Wait Until 2018: https://www.nilc.org/issues/immigration-reform-and-executive-actions/dreamact/5-reasons-dream-act-cant-wait-til-2018/

[2]Boost to state GDP from passing Dream Act: Center for American Progress: https://www.americanprogress.org/issues/immigration/news/2017/10/26/441298/the-state-by-state-economic-benefits-of-passing-the-dream-act/

[3] Almost half of Fortune 500 companies were founded by American immigrants or their children: https://www.brookings.edu/blog/the-avenue/2017/12/04/almost-half-of-fortune-500-companies-were-founded-by-american-immigrants-or-their-children/

[4] Douglas Holtz-Eakin, “CBO and the Dream Act,” American Action Forum’s The Daily Dish, December 20, 2017.

Dream Act Would Boost NY Economy and Tax Revenues: Revoking DACA Hurts Both

Dream Act Would Boost NY Economy and Tax Revenues

Revoking DACA Hurts Both

 

The Dream Act would allow immigrants in New York to contribute more fully to the state economy, boosting longterm state’s $1.5 trillion GDP by at least $1.8 billion a year, and increasing state and local tax revenues in New York by $62 million, according to a report released today by the Fiscal Policy Institute that draws on analyses from the Center for American Progress and the Institute on Taxation and Economic Policy.

The Dream Act would make it possible for undocumented immigrants who arrived in the United States as children to live and pursue their careers here without fear. Immigrants who are already in the state could find jobs that better match their skill level, boosting the output of New York’s businesses and increasing both the immigrants’ salaries and the state’s tax revenues.

The Congressional Budget Office recently released a study of the impact of the Dream Act that did not look at the economic gains, but found that at the federal level there would be an increase in both tax revenues and government spending, with a net addition to the deficit of about $25 billion.

“There would be increased costs as well as increased revenues in New York, too,” said David Dyssegaard Kallick, director of immigration research at the Fiscal Policy Institute. “As at the federal level, those would be largely investments in future economic growth and in the health of our population.”

Advocates are pressing harder than ever for a Dream Act because of the situation created when President Trump revoked DACA (Deferred Action for Childhood Arrivals), which grants immigrant youth temporary relief from deportation and gives them authorization to work lawfully in this country. Around the country, 800,000 people were eligible for DACA, including 76,000 in New York State.

“Congress really needs to implement a solution that will bring back stability into these young immigrants’ lives,” said Cyierra Roldan, policy analyst at the Fiscal Policy Institute. “Their world was disrupted by the termination of DACA, when suddenly they had to fear of being deported to a country that is foreign to them.”

In fact, the GDP growth could be considerably higher than $1.8 billion, the report shows. The GDP growth might be more likely to be $5.8 billion if half of the young people who qualify for the Dream Act wind up going to college, a highly reasonable proposition.

Beyond that, added Kallick, “here’s what you can’t account for in any model: two or three of these Dreamers may be the ones to start the next Google or Tesla or PayPal. You can’t make a calculation that predicts how many new companies like that there will be. But you can pretty well bet on the idea that this country will provide a fertile ground for that kind of vibrant entrepreneurship.”

Click here to read the full New York State report.

###

Brian Talks New York – Trump to NY: Drop Dead

December 14, 2017. Ron Deutsch, FPI’s Executive Director, got to go on Brian Talks New York which is anchored by Peabody Award-winning public radio host Brian Lehrer. Each week Brian and his guests from academia, journalism and politics analyze the latest news in Brian’s home town of NYC.

The segment is on How’s the Trump tax reform bill likely to hit New Yorkers, rich, middle class and poor? Joining Brian’s panel of experts, AFL-CIO chief economist William Spriggs, Empire Center for Public Policy research director E.J. McMahon, and Fiscal Policy Institute director Ron Deutsch.

Guest List

Ron Deutsch Director, Fiscal Policy Institute
E.J. McMahon Research Director, Empire Center for Public Policy
William Spriggs Chief Economist, AFLCIO

 

Access to Video Here

Health Care Cuts and Higher Taxes Put Millions of New Yorkers At Risk

FOR IMMEDIATE RELEASE

Contact:

Ron Deutsch, Fiscal Policy Institute, (518) 469-6769

Michael Kink, Strong Economy for All,  (518) 527-2787

 

Health Care Cuts and Higher Taxes Put Millions of New Yorkers At Risk

New Data Anticipates Loss of Health Coverage and Rising Taxes for Poor and Middle-Income New Yorkers

Albany, NY – Leaders from community and worker’ rights organizations held a press conference on Friday to protest the tax reform plan that could emerge from the House and Senate conference within the next week.

In their latest analysis, the Institute on Taxation and Economic Policy found that both the House and Senate bills would raise taxes on low and middle-income families, while extending over 40% of its tax cuts to the wealthiest 5% of New Yorkers..

The tax plan will also have a grave impact on front-line health care programs like Medicare and Medicaid, with the number of uninsured people in New York swelling to an estimated 843,000 people by 2025.

“Despite some differences between the House and Senate bills a couple of things are crystal clear. Both bills favor the wealthy and corporations over working class taxpayers and both bills are terrible for New York,” said Ron Deutsch, Executive Director of the Fiscal Policy Institute. “Any of our members of Congress that support tax increases for our poorest residents while at the same time stripping nearly 1 million New Yorkers of their healthcare benefits will have a lot to answer for. Now is the time to put people over party and reject this destructive tax bill.”

“Let us be very clear here. Voting yes on this tax bill is a vote to raise taxes on poor and middle class New Yorkers in order to pay for a massive tax cut for the very rich. Speaker Ryan made it clear on Wednesday he now wants to cut benefits like Medicare, Medicaid, Social Security, and many social programs in order to pay for the massive deficit this tax bill will create. Churches fought hard for progressive taxation and social programs to care for our communities. We cannot allow Congress to destroy what millions of Americans have worked so hard to create,” said Reverend Peter Cook, Executive Director of the New York State Council of Churches.

The coalition did not mince words when it came to their disappointment in their Members of Congress, specifically Reps. Claudia Tenney, John Katko, Chris Collins, and Tom Reed, all of whom voted in support of the House tax bill.

“The GOP tax scam raises taxes on regular New Yorkers, takes away health care coverage, and sets up trillion dollar cuts to Medicare, Medicaid and Social Security. Any member of Congress who votes for this bill is voting to hurt their own constituents to pay off the billionaires and bankers on Wall Street who fund their campaigns. It’s corrupt, it’s disgusting, and it’s wrong,” said Michael Kink, Executive Director of the Strong Economy for All Coalition.

“Everyone deserves the security of health insurance coverage. The House and Senate tax bills would significantly threaten the Medicaid program, endangering the health and wellbeing of millions of New Yorkers who rely on Medicaid. Medicaid provides needed health care services, supports people to live independently in their homes, and saves money overall. The tax overhaul being negotiated in Washington is senseless and cruel and it must be defeated,” said Lara Kassel, State Coordinator for Medicaid Matters NY.

“Beyond the staggering inequality promulgated in the tax bill, the Human Services Council is deeply concerned about the devastating impact the bill will have on critical services in our state. The deficit this bill creates will ultimately send human services programs to the chopping block. When Medicaid and federal aid to states are slashed, the outcome will be a loss of programs that provide opportunity to millions in New York. To build strong communities, we cannot implement a tax bill that rewards special interests and does little for the individuals and families across the nation,” said Allison Sesso, Executive Director, Human Services Council.

“The absolute disdain for the poor, elderly and the infirm is on full display in these proposed tax bills,” said Susan Zimet, Executive Director of the Hunger Action Network. “Goodbye SNAP, Social Security and Medicare and Medicaid as we know it.”

“The Republican politicians’ fat promises of a year ago have been cast into the trash. Very wealthy donors, corporations, hedge fund partners, and zealots have bought and paid for a customized tax bill that has no principles, discipline, or credible economic basis. Next in line for this theft are cuts to Social Security, Medicare, VA benefits, Medicare, education, the CDC, and national parks. They will all be cut to close the deficits the tax scam creates. Why does the GOP want to make our rich, stable country poor and unstable?” said Peter Greenough, member of Oblong Valley Indivisible.

Jasmine Gripper, Legislative Director for the Alliance for Quality Education, raised concerns about the financial impact on New York State’s public schools: “All children should have access to a quality public education. But the House and Senate tax bills will most harm our public school students, even though 90% of children attend public schools. The proposed changes in state and local tax deductions in both bills could restrict local governments’ efforts to finance public schools. This puts New York State at risk of losing over $5 billion and thirty thousand educators. We need New York’s Congressional delegates to reject the devastating Trump/DeVos agenda and put the needs of local children ahead of their wealthy campaign donors.”

“This terrible piece of legislation is a direct attack on the working people and their families of New York. The students of New York deserve so much better than this. Losing the SALT deduction will force an already stressed educational budget to fall apart. Teachers are currently funding their own classrooms out of their own pockets. Union members are no longer allowed to deduct their union dues. All of these losses are a direct hit on the pocketbooks of the working class. We are calling on our representatives across NY State to stand up and do the right thing for all New Yorkers,” said Melissa Servant, teacher at Wallkill Senior High School.

“This scam of a bill is a blatant giveaway to corporations and billionaires at the expense of women, children, seniors, working families, sick people, small businesses, the environment, and so much more. If it is signed into law, this bill could collapse the American healthcare market as we know it. It will add $1.4 trillion dollars to the deficit, which will force deep cuts to Medicaid, Medicare, and Social Security down the road,” said Alan Stern, Leader of Greenwich Indivisible New York.

Groups participating in the press event included New York State Nurses Association (NYSNA), Citizen Action of New York, Strong Economy for All Coalition, NYS Council of Churches, Hunger Action Network of New York State, Indivisible, Communication Workers of America (CWA), New York State United Teachers (NYSUT), and the Fiscal Policy Institute.

Read the Fiscal Policy Institute’s full report here: http://fiscalpolicy.org/house-and-senate-tax-bill-will-hurt-new-yorks-poorest-taxpayers-and-result-in-many-losing-health-coverage

 

 

House and Senate Tax Bill Will Hurt New York’s Poorest Taxpayers and Result in Many Losing Health Coverage

December 2017, House and Senate Tax Bill Will Hurt New York’s Poorest Taxpayers and Result in Many Losing Health Coverage

Impact of Tax Cuts to New Yorkers (Both Bills)

The Institute on Taxation and Economic Policy (ITEP) released its analysis of both the House and Senate tax bills for all fifty states. Both bills would raise taxes on many lower- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows the share of the tax cuts by New York’s taxpayers, with the poorest 20 percent of income earners receiving 1-2 percent of all the tax cuts and the top 5 percent of income earners receiving over 40 percent of the tax cuts with both plans.[1]

Under the Senate bill, when fully implemented, the bottom 60 percent of New Yorkers will see a tax increase.

Based on these graphs, it is crystal clear that the wealthiest New Yorkers will receive a massive tax cut while working families and children will lose out.

Impact on Healthcare: Repeal of the Individual Mandate (Senate Tax Bill)

The Senate dealt a massive blow to healthcare by repealing the individual coverage mandate as part of its tax bill. The Congressional Budget Office (CBO) has estimated that the repeal of the mandate will result in millions more uninsured over the next decade, regardless of whether Congress approves a market stabilization package. The Center for American Progress recently published estimates of the increase in uninsured by Congressional District under the Senate GOP tax bill.[2] According to these estimates, the collective impact of uninsured by 2025 for New York State would be approximately 843,000 people. This group includes Medicaid recipients, people with insurance from the individual market, and folks with employer-sponsored insurance. A major portion of the newly uninsured would come from the individual market, where the mandate repeal would raise premiums and drive some people out of coverage altogether.

Representative Total Coverage Reduction Medicaid Individual Market Employer-Sponsored Insurance
Lee M. Zeldin (NY-1) 43,000 13,800 26,200 3,100
Peter T. King (NY-2) 19,100 14,300 1,800 3,000
Thomas R. Suozzi (NY-3) 45,100 13,700 28,000 3,500
Kathleen M. Rice (NY-4) 72,100 14,100 22,800 35,300
Gregory W. Meeks (NY-5) 42,100 16,100 23,800 2,100
Grace Meng (NY-6) 39,800 14,800 22,800 2,100
Nydia M. Velázquez (NY-7) 35,200 15,900 2,800 16,400
Hakeem S. Jeffries (NY-8) 49,600 15,500 32,200 1,900
Yvette D. Clarke (NY-9) 44,000 14,900 27,200 1,900
Jerrold Nadler (NY-10) 37,400 14,100 5,300 18,000
Daniel M. Donovan, Jr. (NY-11) 18,900 14,500 1,700 2,700
Carolyn B. Maloney (NY-12) 40,300 14,200 6,600 19,400
Adriano Espaillat (NY-13) 21,400 16,700 3,300 1,400
Joseph Crowley (NY-14) 36,000 13,700 20,900 1,300
José E. Serrano (NY-15) 18,100 16,300 1,700 100
Eliot L. Engel (NY-16) 18,800 14,200 1,900 2,600
Nita M. Lowey (NY-17) 34,600 14,600 17,100 2,900
Sean Patrick Maloney (NY-18) 19,200 14,100 1,900 3,100
John J. Faso (NY-19) 17,300 12,900 2,200 2,200
Paul Tonko (NY-20) 40,700 14,100 3,100 23,600
Elise M. Stefanik (NY-21) 17,500 13,100 2,500 2,000
Claudia Tenney (NY-22) 17,700 13,300 2,300 2,100
Tom Reed (NY-23) 18,700 13,300 3,400 2,000
John Katko (NY-24) 18,300 13,700 2,200 2,400
Louise Slaughter (NY-25) 42,100 14,000 3,100 25,000
Brian Higgins (NY-26) 17,900 13,800 2,200 1,900
Chris Collins (NY-27) 18,100 13,500 1,500 3,100
Total 843,000 387,200 270,500 185,100

 

 Partial Repeal of Federal Income Tax Deduction for SALT (State and Local Taxes) 

The SALT deduction lets taxpayers deduct their state and local income or sales taxes, whichever are greater, and their state and local property taxes. The House and Senate tax bills both fully eliminate SALT deductions for income or sales taxes, and cap the deduction for property taxes at $10,000. Retaining a limited SALT deduction for property taxes does little to protect state budgets from the strain that fully repealing SALT would produce. Thus, eliminating the income or sales tax deduction would likely lead over time to cuts in state funding for schools, healthcare, and other services on which middle- and lower-income families rely. The Center on Budget and Policy Priorities has created an interactive map of all fifty states with information on the SALT deduction by Congressional District, which has been transposed into a table below with SALT information for all of New York’s 27 Congressional Districts.[3]

Representative

 

Total Count of State Tax Returns

 

 

State/Local Income and Sales Tax Deduction

 

 

Total SALT Deductions

 

Income/Sales Deduction as Percent of Total SALT Deduction

 

# of Returns Amount Deducted ($1000s) % of All Returns # of Returns Amount Deducted ($1000s) % of All Returns
Lee M. Zeldin (NY-1) 353,170 165,790 $1,555,078 46.9% 168,256 $3,006,503 47.6% 51.7%
Peter T. King (NY-2) 379,732 170,484 $1,114,060 44.9% 172,991 $2,633,817 45.6% 42.3%
Thomas R. Suozzi (NY-3) 364,374 196,677 $3,555,236 54% 199,084 $5,978,112 54.6% 59.5%
Kathleen M. Rice (NY-4) 377,536 182,166 $1,802,117 48.3% 184,824 $3,574,029 49% 50.4%
Gregory W. Meeks (NY-5) 362,821 122,416 $819,144 33.7% 124,566 $1,227,476 34.3% 66.7%
Grace Meng (NY-6) 369,321 109,182 $1,074,559 29.6% 110,515 $1,449,292 29.9% 74.1%
Nydia M. Velázquez (NY-7) 353,774 95,737 $1,935,744 27.1% 96,599 $2,157,735 27.3% 89.7%
Hakeem S. Jeffries (NY-8) 350,411 103,361 $1,001,769 29.5% 104,670 $1,228,059 29.9% 81.6%
Yvette D. Clarke (NY-9) 349,294 99,758 $1,198,079 28.6% 101,015 $1,421,876 28.9% 84.3%
Jerrold Nadler (NY-10) 365,864 165,791 $8,257,164 45.3% 167,014 $9,243,255 45.6% 89.3%
Daniel M. Donovan, Jr. (NY-11) 335,049 132,082 $1,460,370 39.4% 133,337 $1,967,332 39.8% 74.2%
Carolyn B. Maloney (NY-12) 406,117 209,400 $12,002,312 51.6% 210,878 $13,394,811 51.9% 89.6%
Adriano Espaillat (NY-13) 356,703 80,080 $889,309 22.5% 80,854 $1,008,516 22.7% 88.2%
Joseph Crowley (NY-14) 350,853 87,964 $668,177 25.1% 88,939 $847,608 25.3% 78.8%
José E. Serrano (NY-15) 331,497 50,198 $251,625 15.1% 50,800 $292,755 15.3% 86%
Eliot L. Engel (NY-16) 357,009 141,694 $2,814,651 39.7% 143,754 $4,126,824 40.3% 68.2%
Nita M. Lowey (NY-17) 352,432 166,496 $2,632,760 47.2% 168,766 $4,550,002 47.9% 57.9%
Sean Patrick Maloney (NY-18) 338,267 146,226 $1,513,438 43.2% 148,556 $2,833,681 43.9% 53.4%
John J. Faso (NY-19) 314,540 99,052 $683,233 31.5% 102,819 $1,368,035 32.7% 49.9%
Paul Tonko (NY-20) 356,738 119,038 $1,040,835 33.4% 122,114 $1,800,020 34.2% 57.8%
Elise M. Stefanik (NY-21) 310,498 67,564 $459,641 21.8% 70,671 $805,662 22.8% 57.1%
Claudia Tenney (NY-22) 308,959 67,791 $429,675 21.9% 70,870 $803,802 22.9% 53.5%
Tom Reed (NY-23) 301,876 62,449 $405,448 20.7% 64,926 $758,826 21.5% 53.4%
John Katko (NY-24) 330,286 96,273 $652,766 29.1% 97,898 $1,239,951 29.6% 52.6%
Louise McIntosh Slaughter (NY-25) 345,864 113,490 $823,455 32.8% 115,047 $1,563,384 33.3% 52.7%
Brian Higgins (NY-26) 337,775 78,057 $526,949 23.1% 79,400 $911,206 23.5% 57.8%
Chris Collins (NY-27) 347,618 109,165 $791,535 31.4% 111,175 $1,442,105 32% 54.9%

[1] “How the House and Senate Tax Bills Would Affect New York Residents’ Federal Taxes,” Institute on Taxation and Economic Policy, December 6, 2017. https://itep.org/housesenatetaxplans-dec17-ny/

[2] “Estimates of the Increase in Uninsured by Congressional District Under the Senate GOP Tax Bill,” Center for American Progress, December 5, 2017. https://www.americanprogress.org/issues/healthcare/news/2017/12/05/443767/estimates-increase-uninsured-congressional-district-senate-gop-tax-bill/

[3] “House District Map: Partial SALT Repeal Kills Most Valuable Part of Deduction,” Center on Budget and Policy Priorities, December 5, 2017. https://www.cbpp.org/blog/house-district-map-partial-salt-repeal-kills-most-valuable-part-of-deduction#New_York@1

Access to PDF File HERE

Fiscal Policy Institute: A Third of NYers Will Pay More Under Senate Tax Bill

December 4, 2017. Ron Deutsch, with the left-leaning think tank Fiscal Policy Institute says there’s nothing positive in the tax overhaul plan for New Yorkers. He says the middle class and the poor in New York will pay more under the Senate’s tax overhaul plan.

“We need to understand that 30 to 35 percent or more of New Yorkers that would actually see a tax increase under this plan”, Deutsch said. “You know, this notion that they’re going around trying to sell this as a middle class and lower income tax cut is just preposterous.”

Deutsch says an end to the ability to deduct state and local taxes from their federal tax bill is also bad for New York. He says it will result in many middle class and wealthier New Yorkers paying more in taxes.

According to Deutsch, “Getting rid of the state and local tax deduction is huge for states like New York right? We are a higher taxed state, people are able to write off their income taxes and property taxes. Under the Senate bill that would no longer be allowed.”

He says Republicans in Congress say by allowing the deductions, the federal government subsidizes taxpayers in high tax states like New York and California. But Deutsch says the opposite is true. And he says the state already gives more money to the federal government than it gets back.

But, he says, “What they fail to recognize is that it’s usually the high taxed states that are subsidizing the lower taxed states… we’re enhancing their level of services by our contribution.”

Access to Article HERE

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