Getting Rid Of NY State's Income Tax?

  • Getting Rid Of NY State's Income Tax?

Getting Rid Of NY State's Income Tax?

New York Governor, Andrew Cuomo, said that the city will sue the Federal Government concerning the overhaul of federal tax.

"We are developing a plan to restructure our tax code to reduce reliance on our current income tax system and adopt a statewide payroll tax system", he said.

Fredonia Mayor Athanasia Landis told the OBSERVER following the address that she's pleased the governor is addressing the deductibility of state and local taxes in the new federal law.

For Cuomo and his high-tax state, this is a massive problem. He said that he will investigate ways to change the payroll tax of the state so that the hit from the federal government is tempered down.

With the new federal tax plan in place, Cuomo is exploring adjustments to the state's tax policies. "Now, payroll taxes are legal".

"If the income tax is reduced by the same amount as the payroll tax, the state gets the same amount of money, the worker ends up in the same place and the Republicans don't get to screw the blue states", Dean Baker, an economist at the Center for Economic and Policy Research, a left-leaning think tank in Washington D.C., wrote December 20.

"We believe it is illegal, and we will challenge it in court as unconstitutional", Cuomo said during his State of the State address.

Also, New York has a progressive income-tax system where higher income residents pay more in taxes.

Some states, like California, are considering a way to set up a charitable organization so residents can donate to the state to pay for programs and services in lieu of paying income taxes - thus allowing the contributions to be deductable. But payroll taxes would be the opposite.

Heather Briccetti, president and CEO of The Business Council of New York State, expressed her willingness to work with Cuomo and state legislators to adjust the tax code. He added that the law could cause people to leave NY and could make it harder to attract new businesses to the state.

Other business groups agree with Briccetti's position. He said in his State Speech that the Republican-approved tax bill is not proper.

Further information about Cuomo's proposed tax plan wasn't immediately available. He pretty much said that it robs blue states to help finance tax cuts in red states. Cuomo will deliver his executive budget presentation, which will outline his spending proposals for the 2018-19 fiscal year.

Cuomo and state legislative leaders hope to have a state budget finalized by April 1, which is the beginning of the new fiscal year.