April 5, 2018. New York’s first-in-the-nation response to the new federal tax package and its cap on the deductibility of state and local taxes is now law, but the impact of the measure remains uncertain, experts say.
The state budget adopted Saturday includes Gov. Andrew. M. Cuomo’s proposal for a voluntary state payroll tax and the creation of charitable entities aimed at preserving the deductibility of state and local taxes on federal income tax returns.
The labor-backed Fiscal Policy Institute credits the governor and legislature for taking action.
“Unfortunately, the plan of the tax reform has not been adequately vetted. At this point, we urge the governor and the legislature to hold hearings on the plan to assess its consequences.”
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