N.Y. Grapples With Tax Conformity Issues After Federal Tax Law Bloomberg BNA

E.J. McMahon, research director at the Empire Center for Public Policy, a conservative-leaning think tank, stated that the tax conformity issues raised by the federal law would be the primary focus of New York tax policy in most years. However, the state and local tax deduction (SALT deduction) issue, and the related proposals to shift the state’s reliance away from the personal income tax, has drawn the lion’s share of attention.

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.

Restructuring NY’s Taxes Sounds Good. Now for the Details. The New York Times

For Gov. Andrew M. Cuomo, the idea must seem like sweet payback for the pains inflicted on his state by the new federal tax plan: an elegant workaround whereby New York could replace its state income tax with a payroll tax and leave Washington, not Albany, on the hook for billions of dollars in lost revenue.

But like so many white-paper plans, the proposal — while still in its larval stage — is already running headlong into a barrage of practical questions about how precisely such a switcheroo might work.

“The more you think about this,” said E.J. McMahon, a conservative economist and founder of the Empire Center for Public Policy, “the more it makes your head spin.”

State response to federal tax reform by E.J. McMahon | Press Releases

MEMORANDUM TO: Governor Cuomo Members of the Legislature FROM: E.J. McMahon Research Director, Empire Center for Public Policy SUBJ: State response to federal tax reform Last month’s passage of the Tax Cuts and Jobs Act, the most sweeping rewrit...

What the Republican tax plan means for New Yorkers Albany Business Review

E.J. McMahon, research director of the Empire Center for Public Policy, a fiscally conservative research group in Albany, said earlier this week eliminating the state and local income tax deduction would hurt New York.

"From the state budget standpoint, still, if they repeal the income tax deduction, that is a huge threat to New York more than any other state to our tax base, and that's because the state has become dangerously over-reliant on taxes paid by the highest-earning 1 percent," McMahon said.

The NY tax hike in Trump’s tax cut by E.J. McMahon | New York Post

Plenty of unintended consequences, positive and negative, will be lurking in the fine print of the tax-reform bill unveiled Thursday by House Republicans.

But it’s already clear the plan would clobber Albany’s favorite cash cow: the seven-figure earners who generate more than 40 percent of the state income tax.