But the elimination of most deductions, including state and local taxes, has some in the Tri-State calling the proposal a middle class misery, CBS2’s Carolyn Gusoff reported.READ MORE: Strome, Panarin Lead Rangers To Win Over Blackhawks
Senior citizens on Long Island received tax advice Thursday, but they may soon need tax relief. The president’s proposed tax overhaul eliminates the deduction for state income taxes and local property taxes.
“I think that would be very unfair for New Yorkers, because we pay very high property taxes,” one woman told Gusoff.
The president’s overhaul would consolidate seven tax brackets into three, double the standard deduction, eliminate the alternative minimum tax and estate tax, and lower corporate taxes.
All of which are potential wins for some, but the gains could potentially be wiped out by the loss of property tax deductions, said the head of Long Island’s largest business group.
“This will have a $2.5 billion negative impact on Long Island,” President & CEO of the Long Island Association Kevin Law said. “That is a significant amount of money leaving this region.”
Gov. Andrew Cuomo also warned of a devastating impact on the New York economy with on average a $5,300 per household hike in federal income taxes.READ MORE: New York Weather: CBS2’s 12/5 Sunday Morning Forecast
“It is literately taxing the taxes you pay,” he said. “It’s ludicrous.”
Republican Congressman Peter King tweeted, “Any tax reform legislation must retain state and local tax deductions. Hard working New Yorkers must not be taxed twice.”
Democrat Tom Suozzi warned it could also cripple the real estate market.
“Maybe it’s part of a negotiating posture. But we have to fight it every way we can,” he said.
Accounting advisors at Marcum LLP crunched the numbers.
“If you’ve got an elimination of a serious amount of deductions and your marginal bracket stays about the same at say about 35 percent, you’ve just lost those deductions. So you are going to see an increase in tax,” said partner Robert Spielman.
“If it helps the country and we really have to get something done, I guess I really couldn’t say that I would be opposed to it,” Woodmere resident Bea Monsowitz said.MORE NEWS: LaVine, DeRozan Lead Bulls To Win Over Nets
Critics point out that states with no income tax will shoulder far less of the federal burden.