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.”
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