Advocates Propose Capturing Part of Fed’s Corporate Tax Cut

January 3, 2018. In Albany on Tuesday, advocates for the needy proposed a “recapture tax” in which the state would keep some of the federal tax breaks headed to corporations. The advocates said the recapture tax could help make up for expected federal cuts to Medicaid, Medicare, Social Security and other programs proposed for later this year that would worsen the plight of the working poor in New York. Congressional leaders and President Donald Trump said they would consider cutting the entitlement programs in part to reduce costs and help pay for the corporate tax cut adopted in December.

The 29th annual “people’s state of the state address” was held Tuesday in 14-degree-temperatures outside the Capitol. Advocates sought to present issues such as the need to increase funding to overburdened food pantries, the need for a higher minimum wage and the need to bolster health care following the federal tax law that will allow people to opt out of Obamacare without paying a penalty.

“Corporations are going to see a huge windfall,” said Ron Deutsch, executive director of the labor-backed Fiscal Policy Institute. “Corporations have been sitting on a mountain of cash.”

 

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