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

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