Zack Fink

For months, Governor Cuomo has publicly criticized the Trump tax law, passed by Congress in late 2017.

Cuomo singled out a provision that caps the deductions people can claim for state and local taxes, also known as SALT.

“The Salt effect on New York, if it is not repealed, can transform the economy,” said Governor Cuomo.

Cuomo has said millions of New Yorkers were hurt by SALT deductions being capped at $10,000, and some have even been making plans to leave New York State.

But according to the Empire Center, a non-profit group based in Albany, the overall impact of the Trump tax cuts actually benefited most state residents.

“Well over 80 to 90% of New Yorkers are paying lower combined federal and state income taxes than they were before the federal tax law passed,” said E.J. McMahon of the Empire Center.

The reason, according to McMahon, is that while homeowners in the suburbs are adversely impacted by the SALT deduction, most have children. And the same Trump tax law doubles what’s known as the child tax credit for their dependents.

Many of those who are disproportionately impacted by the Trump tax cuts are the so-called one percent.

“The people who are definitely paying higher taxes are the highest earning New Yorkers, especially people who live in New York City who have very high incomes of a million dollars or more,” continued McMahon.

New York along with Connecticut, New Jersey and Maryland filed suit against the federal government, claiming the tax plan was an assault against their states. But that suit was thrown out this week. Cuomo was asked about it during a radio interview.

“The tax reform passed by Trump was a partisan bill that literally took money from the Democratic States and gave it to the Republican States,” said Cuomo.

At this point the Cuomo administration is considering its options. They still maintain that the Trump Tax plan unfairly targets New Yorkers and they are considering appealing the judge’s ruling.

© 2019 Spectrum News

You may also like

The good, the bad and the ugly in Cuomo’s budget

“We are at the early stages of what shapes up as the biggest state and city fiscal crisis since the Great Depression,” said E.J. McMahon of the Empire Center. “Borrowing and short-term cuts aside, the budget doesn’t chart any clear path out of it.” Read More

Medicaid cuts make the state budget, with some tweaks

Bill Hammond, director of health policy at the conservative-leaning think tank the Empire Center, suggested this is because the proposed cuts are meant to slow the otherwise rapid growth in Medicaid spending, which means an increase is still possible.  Read More

Editorial: Cuomo’s problematic Medicaid maneuvers

“It’s everything that’s wrong with Albany in one ugly deal,” Bill Hammond, a health policy expert at the fiscally conservative Empire Center, told The Times. Read More

NYS Healthcare Costs Rise Amid Report Of Pay-To-Play Allegations

Earlier this year, another fiscal watchdog group,  The Empire Center, found that  Cuomo’s budget office had delayed a $1.7 billion Medicaid payment from the previous fiscal year into the current fiscal year. Because of the delay, the governor was able to keep within a self imposed 2% yearly spending cap. Read More

After Hospitals’ Donation to New York Democrats, a $140 Million Payout

“It’s everything that’s wrong with Albany in one ugly deal,” said Bill Hammond, a health policy expert at the nonpartisan Empire Center who first noticed the budgetary trick. “The governor was able to unilaterally direct a billion dollars to a major interest group while secretly accepting its campaign cash and papering over a massive deficit in the Medicaid program.” Read More

EDITORIAL: State schools continue spending more for less

As reported by the Empire Center last week, “The number of students enrolled in New York state public schools is the lowest recorded in 30 years.” Since 2000, enrollment in public schools has declined by more than 10 percent statewide with most of it upstate as enrollment in New York City schools has increased 1.3 percent in the last 10 years. Students are not leaving to go to private or parochial schools either because they, too, are showing declines, down about 8 percent in the last decade. Read More

Comptroller warns of financial distress at the MTA, and the MTA goes on a hiring spree

According to Ken Girardin, a labor analyst at the right-leaning Empire Center for Public Policy, every new police officer will cost the MTA roughly $56,000, which means the new personnel would initially cost the MTA roughly $28 million a year. Those costs should rapidly increase over time, as police salaries rapidly increase. Read More

What Cuomo’s executive order on vaping will and won’t do

“If you have these really young kids and teens getting hooked, then that’s not good," said Bill Hammond, director of health policy at the Empire Center for Public Policy. "But the first step would be to do some research, have a public hearing, get the best expert evidence that you have. Instead of reacting to headlines, find out what’s really going on and proceed with proposed regulations.” Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.