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Cuomo against ending local tax deduction

Tuesday, April 16, 2013
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— Ending a longstanding local tax deduction on federal tax returns would cost taxpayers in the Capital Region an average of $2,900, according to the state Department of Taxation and Finance.

Gov. Andrew Cuomo spoke out Tuesday against the proposal, which was included in President Barack Obama’s budget proposal.

“The proposals under consideration that would repeal or cap the deduction for state and local taxes would have severe consequences for taxpayers here in New York and across the nation,” he said in a statement. “I urge Congress and the administration to act in the best interests of taxpayers and reject these proposals that would cost New York families thousands of dollars extra each year.”

More than 3 million New Yorkers typically take advantage of this policy, which allows taxpayers to deduct their state and local taxes, including property taxes, from their federal tax bill. The deductions were worth about $57 billion to New Yorkers in 2010, according to state officials.

In the Capital Region, the state estimates more than 170,000 taxpayers utilize this deduction.

U.S. Rep. Bill Owens, D-Plattsburgh, said Congress needs to carefully consider the ramifications of ending this deduction.

“This is a process that needs to move forward with care and thoughtfulness to protect the middle class, and I look forward to a robust, bipartisan debate on how we can best keep taxes low while eliminating unnecessary complexity in the tax code and ensuring fairness,” he said in a statement.

Cuomo noted that the local tax deduction was worth more for New Yorkers in 2010 than the home mortgage interest and individual charitable contributions deductions combined.

E.J. McMahon, director of the fiscally conservative Empire Center of New York, wrote in a blog post Tuesday that a strong case can be made for retaining the deduction. He noted that Obama and the Republicans in Congress have similar views on ending the deduction and predicted they might agree to ending the deductions for wealthy households.

“Both are willing to tightly curtail if not eliminate tax breaks at the top end, of which the state and local tax deduction is among the largest,” McMahon wrote.

 
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comments

April 17, 2013
5:42 a.m.
Root_Beer says...

You have to love this country but things have to change. We pay taxes on our taxes and surcharges on those taxes and Congress only looks for more revenue never ways to cut spending unless it is for Social Security. They have had their hands in the Social Security cookie jar for so long, for so much and now they want to give it to millions who never paid in so even more revenue is needed from an ever shrinking work force. Lets start by cutting retirement for Congress and The Senate unless you serve for 20 years to become eligible like most other jobs.

April 17, 2013
6:58 a.m.
wmarincic says...

And then have a two term limit with no retirement.

April 17, 2013
10:23 p.m.
cheeseburger says...

coumo is just looking for votes do to his anti gun stance. gun owners, dont forget what the dems did when voting in the next election.

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