The GOP unveiled their latest tax reform bill on Thursday.
While most are still grappling to understand this extensive document, there are a few key issues that relate directly to New Yorkers.
“They recognize that it’s complex, it’s going to take time, you’re not going to get it for Christmas,” Hugh Johnson, of Hugh Johnson Advisors, said.
As Johnson explains, with all the new changes, this tax bill might take a little longer than Congress hopes to get a vote wrapped up before Christmas. Especially since many lawmakers are still conflicted over how state and local tax deductions, or SALT, should fit into this bill.
In the original bill, SALT deductions were completely eliminated. This new bill still eliminates income and sales tax deductions but now allows for property tax deductions. The deductions will be capped at $10,000.
“Most New Yorkers do not pay even the $10,000 and they still will be allowed to deduct school and property taxes up to $10,000,” Johnson said.
Governor Andrew Cuomo and Senator Charles Schumer are both speaking out against this newest version of the bill saying this compromise still places New Yorkers at an unfair disadvantage.
“All of the compromises they are talking about, none of them work. It’s just how much pain you would inflict and how much you would increase taxes for middle class workers,” Gov. Cuomo said.
“It would blow a hole in the deficit for a decade,” Sen. Schumer said. “We couldn’t do things that we need to do to rebuild this country and it would make income distribution even worse, bad enough as it is now, taking away money from middle class people.”
U.S. Representatives John Faso and Elise Stefanik both released statements in support of tax reform, but neither are committing to which way they will vote on this newest bill.