The Empire Center broke the news this week that the state Department of Taxation and Finance is working on an unincorporated business tax that might allow partners at law firms and investment banks and similar high-paying places to get around the federal limitation on deducting state and local taxes.
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).
The past year has been a roller-coaster for New York’s health-care system, as Congress tried repeatedly to scale back Medicaid and dismantle the Affordable Care Act while allowing other health-related programs to lapse. Because New York depends so heavily on federal health dollars, it had more to lose than almost any other state.
New York Gov. Andrew Cuomo is running for re-election this year and President in 2020, and apparently he thinks his killer app is opposition to the GOP tax bill. Judging by his proposals so far, we’d say this is going to be harder than he thinks.
Conservative critics contend that the complexity could be frightening to corporations that might already be wary of the state’s high-tax reputation. “It’s so complicated, it would be repellent in its own right,” said E.J. McMahon, the founder of the Empire Center for Public Policy.