Work from E.J. McMahon

More on that flaky SALT suit by E.J. McMahon |  | NY Torch

The New York-led multi-state lawsuit challenging the new federal tax law is not as weak as you might have heard.

If anything, it's even worse—a 141-page mashup of half-baked numbers, dubious factual assertions and (largely well-founded) political arguments masquerading as constitutional jurisprudence. [Read_more]

A SALT cap surprise (so far) by E.J. McMahon |  | NY Torch

The newly enacted federal income law provision limiting state and local tax (SALT) deductions "is likely to substantially decrease home values" in New York, Connecticut, Maryland and New Jersey.

That's a key claim of the lawsuit filed by the four states against the Trump administration today with the goal of having the $10,000 SALT deduction cap declared unconstitutional. [Read_more]

Cuomo’s Buffalo Billion was beyond corrupt by E.J. McMahon |  | New York Post

The overarching scandal here wasn’t bid-rigging or the pay-to-play pattern in the developers’ contributions to the governor’s reelection campaign. At the root was a simply awful public policy — corporate welfare on steroids — that neither Cuomo nor most of his critics have definitively renounced, even now. [Read_more]

Cuomo’s upstate hype continues by E.J. McMahon |  | NY Torch

Governor Cuomo frequently asserts that his policies have ignited an economic turnaround in upstate New York, and he's been known to cherry-pick numbers to back himself up. He was at it again during a swing through the Mohawk Valley earlier this week—and, once again, the statistical cherries were in bloom. [Read_more]

Marc Molinaro’s tax-cut challenge by E.J. McMahon |  | New York Post

Molinaro’s rhetoric made it all sound obvious — and easy. In fact, New York faces real financial constraints that’ll limit options for whoever occupies the governor’s office starting next January. [Read_more]

Northport’s cash cow is Long Island’s burden by E.J. McMahon |  | Newsday

Among New York school districts with enrollments of 4,000 or more, the list of highest property taxes per pupil is what you’d expect — topped by Great Neck, Scarsdale, Syosset and Bedford.

In fifth place is a somewhat less wealthy outlier: the Northport-East Northport district. It will raise $28,556 per pupil in property taxes next year, based on data from the state’s 2018-19 Property Tax Report Card. That’s 57 percent above the Suffolk County average. [Read_more]

NY’s regional job divide continues by E.J. McMahon |  | NY Torch

Year-over-year private-sector job growth in New York continued along a familiar path last month—stronger downstate than upstate, and somewhat weaker overall than the national average. [Read_more]

Another SALT work-around emerges by E.J. McMahon |  | NY Torch

After months of behind-the-scenes work, the state Department of Taxation and Finance is circulating a "discussion draft" of proposed bill language creating a new form of state tax designed to preserve some federal income tax deductibility for state and local taxes (SALT) paid by partners in unincorporated firms. [Read_more]

Bigger future gaps in new NY budget by E.J. McMahon |  | NY Torch

New York's newly enacted state budget for the fiscal year that started April 1 is balanced with higher-than-anticipated tax receipts, but out-year projected budget gaps have grown significantly larger, according to quarterly financial plan update issued late Friday afternoon by Governor Cuomo's Division of the Budget (DOB).

[Read_more]

Nashville’s gain, NY’s loss by E.J. McMahon |  | NY Torch

High-tax New York has just lost one of its oldest money-management firms to low-tax Nashville, Tennessee—highlighting an ongoing shift of Wall Street jobs, and of high earners in general. [Read_more]

Exploring NY’s top-heavy PIT base (2018 update) by E.J. McMahon |  | Reports

Nearly two-thirds of New York State’s tax receipts are now generated by the personal income tax, or PIT. As a result, the state is very heavily reliant on highest-earning 1 percent of New York taxpayers—whose effective income tax rates have increased sharply under the new federal tax law capping state and local tax (SALT) deductions. [Read_more]

Cuomo’s dug New York into a giant tax trap by E.J. McMahon |  | New York Post

Cuomo has further boosted the state’s already heavy reliance on taxes paid by income millionaires. This has made Albany’s revenue base more fragile and volatile — a problem aggravated by the new federal cap on state and local tax deductions, which effectively raises total tax rates for New York’s highest earners. [Read_more]

Looking ahead to next year’s Tax Day by E.J. McMahon |  | NY Torch

The interactive map on this page depicts how the federal Tax Cuts and Jobs Act (TCJA) will affect New Yorkers in two different adjusted gross income (AGI) ranges: $75,000 to $100,000, and $100,000 to $200,000. [Read_more]

NY’s unsavory new budget by E.J. McMahon |  | NY Torch

Last week's New York state budget approval process was even more rushed, secretive, confused and sloppy than usual—stretching through Good Friday and the first night of Passover into the predawn hours of Saturday, March 31—all in the name of meeting an ultimately inconsequential April 1 "deadline" for the start of the new fiscal year. [Read_more]

Still more capital pork in budget by E.J. McMahon |  | NY Torch

New York's Legislature and Governor Andrew Cuomo are shoveling yet another $475 million into the biggest, murkiest, pork-barrel slush fund Albany (and perhaps any state capital) has ever seen. [Read_more]

Schumer taps his own state by E.J. McMahon |  | NY Torch

Led by New York's Charles Schumer, U.S. Senate Democrats just unveiled a "Jobs and Infrastructure Plan" that would be financed disproportionately by Empire State taxpayers.

To cover the 10-year, $1 trillion price-tag of their package, Senate Democrats would reverse several provisions of the newly enacted federal tax changes—including reductions in the top income tax rate and in the Alternative Minimum Tax (AMT). [Read_more]

The shape of watered-down SALT by E.J. McMahon |  | NY Torch

The Cuomo administration has released a few more details of its plan to propose an optional payroll tax for New York employers as a way to preserve some of the state and local tax (SALT) deductions capped under the federal Tax Cuts and Jobs Act. [Read_more]

Gov. Cuomo’s selective fight against the new federal tax law by E.J. McMahon |  | New York Daily News

Even before Donald Trump became President, congressional Republican tax reformers had been aiming to get rid of or at least tightly curtail the state and local tax deduction, known as SALT, that mainly benefits residents of New York and other high-tax blue states. [Read_more]

New York’s SALT Substitute by E.J. McMahon |  | City Journal

Gov. Andrew Cuomo began 2018 the way he ended 2017: demonizing Washington Republicans and fulminating against the newly enacted federal tax reform, especially its $10,000 cap on state and local tax (SALT) deductions. Two weeks after his State of the State message, Cuomo devoted a portion of his fiscal 2019 budget presentation to the same subject, pledging again to come up with a plan to restructure the code by shifting from an employee-paid to an employer-paid income-tax system. [Read_more]

Cuomo’s big stealth tax hike by E.J. McMahon |  | NY Torch

Governor Cuomo's budget proposal includes more than $1.5 billion in automatic income tax hikes, affecting many of the same people who have the most to lose from the new federal limits on state and local tax (SALT) deductions. [Read_more]

The loose ends in Cuomo’s budget by E.J. McMahon |  | NY Torch

For the time being, at least, Governor Cuomo's 2018-19 Executive Budget left a pile of loose ends in the state tax code.

With one notable exception, the initial version of the budget doesn't address any of the myriad corporate and personal income tax (PIT) conformance issues raised by passage of the new federal tax law. Instead, those issues are to be explored in a study released by the Department of Taxation and Finance, for consideration during the 30-day amendment period. [Read_more]

The Senate GOP’s mixed bag on taxes by E.J. McMahon |  | NY Torch

State Senate Republicans today issued a "Blueprint for a Stronger New York" that combines a few solid big-picture tax reduction priorities with more of the wasteful "tax relief" gimmickry that's become a standard feature of the Senate GOP tax policy agenda in recent years. [Read_more]

Cuomo’s magical tax thinking by E.J. McMahon |  | New York Post

The governor said he’d explore the feasiblity of “a major shift” of New York’s state tax burden from individuals (who will be losing federal deductions) to businesses (which will be keeping them), via a new statewide payroll tax on employers.

The idea might sound plausible on the surface. But on closer inspection, replacing even part of New York’s personal income tax (PIT) with a payroll tax would be fraught with mind-bending complications — and not very feasible at all. [Read_more]

Hunting for a new SALT shaker by E.J. McMahon |  | NY Torch

Now that the feds have limited the state and local tax (SALT) deduction for individuals, should New York's no-longer-fully-deductible personal income tax (PIT) be converted into an employer payroll tax? [Read_more]

The double-edged sword of prepayment by E.J. McMahon |  | NY Torch

New York homeowners lining up to prepay property taxes in order to reduce their federal income taxes will also be in line for a temporary added cut in their 2017 state personal income tax. As a result, however, the prepayment phenomenon will also at least slightly erode the state government's already sagging income tax receipts in the current fiscal year—while making many of the same homeowners liable for at least a small tax hike in 2018.The rush to prepay local property taxes before the end of 2017, encouraged by Governor Cuomo in reaction to federal reform, will have some unintended consequences. [Read_more]

Cuomo’s Yuletide veto gifts by E.J. McMahon |  | NY Torch

Governor Andrew Cuomo is ending the year on a strong pro-taxpayer note, vetoing union-backed legislation that would have blocked the Nassau County Interim Finance Authority from imposing pay freezes to balance the county budget. [Read_more]

NY out-migration tops 1 million by E.J. McMahon |  | Reports

New York lost another 190,508 residents to other states, bringing the state's total domestic migration change since 2010 to a net loss of more than 1 million people. [Read_more]
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