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Why taxpayers could face $1.5B income-tax hit, if NY doesn’t act

The federal tax bill adopted last month isn't the only threat to high-income New Yorkers who will lose the deductibility of all their state and local taxes.

If the state Legislature and Gov. Andrew Cuomo don't act, some New Yorkers would be on the hook for another $1.5 billion in tax hikes, according to state records and experts.

Cuomo has called the federal tax law "a missile aimed at the heart of New York, and he’s got his own missile aimed at the same people," E.J. McMahon, founder of the Empire Center, a fiscally conservative think tank in Albany, said.

A tax department report last week, in fact, noted how some New York taxpayers would face a series of income-tax increases because New York's system would be tied to the new federal system that limits state and local tax deductions to $10,000 a year.

"New York State could consider decoupling from the new federal law, effectively restoring current deductibility at the state level," the tax department report said.

IthacaJournal.com:
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