Elimination of SALT Deductibility Will Impact Over 530,000 Long Island Taxpayers, Cuomo Says.
Albany, NY - February 9, 2018 - Governor Andrew M. Cuomo today kicked off the Tax Fairness for New York Campaign to move forward on his effort to combat the devastating impacts the destructive, partisan GOP federal tax law will have on New York. Joined by Nassau County Executive Laura Curran and other Long Island leaders and elected officials, Governor Cuomo announced Maryland joined the multi-state coalition to sue the federal government over the tax law.
To advance the state's efforts to overhaul the tax code, and to generate the best ideas and solutions, New York State Budget Director Robert Mujica as well as other New York State representatives have been meeting with experts from state and local government, academia, and the private sector to obtain feedback and comment on the preliminary report released earlier this month by the Department of Taxation and Finance. The report outlines options for state tax reform designed to mitigate the adverse impact of the federal legislation on our economy and on New Yorkers.
"Washington has launched a calculated and direct assault aimed at the very heart of New York and we have two options - stand where we are or get out of the way," Governor Cuomo said. "With the Tax Fairness for New York campaign, we are ramping up our efforts to mitigate the impacts of this plan, examining every possibility to combat this devastating legislation and doing everything we can to protect the rights and wallets of hardworking New Yorkers."
The new federal law disproportionally and adversely impacts the State of New York, which already sends $48 billion more each year to Washington than it receives in federal dollars. According to a recent report released by the State Department of Tax and Finance, the elimination of full SALT deductibility alone will cost New York an additional $14.3 billion.
On Long Island, the elimination of SALT deductibility will impact 530,000 Long Island taxpayers, or 36 percent of all tax filers. The average tax hike from the cap on SALT deductibility for impacted taxpayers in the downstate suburbs is nearly $6,400.
These actions build on Governor Cuomo's three-pronged effort to fight the federal tax assault on New York, as announced in his 2018 State of the State Address. The first step is the multi-state coalition to sue the federal government. The second prong of the effort is to launch a repeal-and-replace strategy, and the third prong is to explore the feasibility of a major shift in the structure of State tax policy.
Maryland Joins Multi-State Coalition to Sue the Federal Government
The Governor has moved forward on his multi-pronged effort to fight the federal tax assault and announced, along with the Governors of New Jersey and Connecticut, a coalition to sue the federal government. The new law seriously impairs the states' ability to govern, to exercise their sovereign power to tax and spend as they see fit, and unfairly targets New York and similarly situated states, all in violation of the Constitution.
Governor Cuomo today announced that Maryland has joined the coalition to sue the federal government, joining New York, New Jersey and Connecticut. Together, these four states represent nearly 15 percent of the national GDP.
Long Island Leaders and Elected Officials Endorse Governor's Tax Fairness for New York Campaign
Governor Cuomo also announced that the following Long Island elected officials and leaders have endorsed his campaign to fight the federal tax law:
Suffolk County Executive Steve Bellone
Nassau County Executive Laura Curran
Suffolk County Majority Leader Kara Hahn
Nassau County Minority Leader Kevan Abrahams
Suffolk County Legislature Presiding Officer DuWayne Gregor
Suffolk County Legislature Deputy Presiding Officer Rob Calarco
Suffolk County Legislator Bill Lindsay
Suffolk County Legislator Kevin McCaffrey
Suffolk County Legislator William Spencer
Nassau County Comptroller Jack Schnirman
Babylon Town Supervisor Rich Schaffer
Hempstead Town Supervisor Laura Gillen
Huntington Town Supervisor Chad Lupinacci
North Hempstead Town Supervisor Judy Bosworth
Oyster Bay Town Supervisor Joseph Saladino
In addition, the Governor will continue to advocate to repeal the federal tax legislation.
Acting Commissioner of Taxation and Finance Nonie Manion said, "Our agency's legal, fiscal, and tax administration experts will continue to collaborate with government and industry stakeholders in support of Governor Cuomo's Tax Fairness for New York Campaign. I applaud the Governor's vital initiative to ensure fair tax treatment for all New Yorkers."
Suffolk County Executive Steve Bellone said: "Long Islanders are ready to fight back against a Congress determined to raise their taxes and lower property values. I thank Governor Cuomo for launching this campaign to protect New York taxpayers from losing their federal tax deductions."
Nassau County Executive Laura Curran said, "I am proud to stand by Governor Cuomo and my partners at the state and local levels to combat this tax plan that unfairly and unduly targets the middle class throughout New York State."
Suffolk County Majority Leader Kara Hahn said, "I am proud to live in a state where our Governor will not stand by and let the federal administration launch a tax assault on the residents of this state. New Yorkers are some of the hardest working people in this country, and under the Governor's leadership, our residents will be protected by this unjust tax law. I applaud New York for getting support for this aggressive agenda and showing the taxpayers of this state that there is light at the end of the tunnel, and Governor Cuomo will help get us there."
Nassau County Minority Leader Kevan Abrahams said, "The federal tax law is an all-out assault on New York State that will devastate our budget and the pockets of hardworking New Yorkers. Governor Cuomo is fighting back for New York taxpayers. With these bold actions, the Governor will mitigate the impact of this unfair law and help protect New York's finances from federal attack."
Suffolk County Legislature Presiding Officer DuWayne Gregory said, "Our representatives in the federal government have displayed a flagrant disregard to middle class New Yorkers and with this Campaign, the Governor makes it clear that this state will take any steps necessary to fight back against this tax plan. By comprehensively and collaboratively studying options to overhaul New York's tax code, our state is working to protect middle class families in every corner of this state, including Long Islanders, who are going to be among those hit the hardest. I thank the Governor for leading the charge in combatting this harmful and unjust federal tax plan."
Suffolk County Legislature Deputy Presiding Officer Rob Calarco said, "This federal tax bill is a reckless piece of legislation that hurts our hardworking families and puts our economy in jeopardy. I am proud to support Governor Cuomo in his effort to the stop the assault on New Yorkers. I look forward to working with the Governor to protect the taxpayers of Suffolk County and all of New York."
Suffolk County Legislator Bill Lindsay said, "The residents of Suffolk County cannot continue to bear the financial burden for the States that take more than they give. The playing field must be leveled and fair. I stand with Governor Cuomo in his efforts to halt the tax assault from Washington and protect our Long Island families."
Suffolk County Legislator Kevin McCaffrey said, "The federal government has waged a targeted assault on New York taxpayers and we must do everything in our power to help New Yorkers hold onto their hard earned dollars. Governor Cuomo is leading the charge against this unacceptable law and I look forward to continuing to work with him to ensure tax fairness for all."
Suffolk County Legislator William Spencer said, "At a time where Washington is turning its back on New York, I stand with our Governor to lead the charge to fight back against the misguided federal tax plan. Hardworking Suffolk residents can rest assured that all possible options are being explored to protect their bank accounts and combat this tax assault."
Nassau County Comptroller Jack Schnirman said, "The federal tax bill will cause real hardship for hardworking middle-class Long Island residents and business owners. It is a bad deal for taxpayers and hurts Nassau County's business climate. Innovative solutions are being developed and we appreciate that Governor Cuomo is leading the way. I thank the Governor for his leadership and his continued dedication to the people of New York."
Babylon Town Supervisor Rich Schaffer said, "Our representatives in the federal government have displayed a flagrant disregard to middle class New Yorkers and with this Campaign, the Governor makes it clear that this state will take any steps necessary to fight back against this tax plan. By comprehensively and collaboratively studying options to overhaul New York's tax code, our state is working to protect middle class families in every corner of this state. I thank the Governor for leading the charge in combatting this harmful and unjust federal tax plan."
Hempstead Town Supervisor Laura Gillen said, "Lowering taxes for hardworking New Yorkers is priority of mine and has been a pillar of Governor Cuomo's administration. While the federal government has turned their backs on New York with their latest tax assault, which eliminates critical SALT deductions for millions of hardworking middle-class families, Governor Cuomo has taken bold action to combat its impact. I stand with the Governor, and all of the hardworking taxpayers in the Town of Hempstead, to ensure our financial protection and future."
Huntington Town Supervisor Chad Lupinacci said, "As a former Assemblyman and current Supervisor I understand the potential devastating impacts that the federal tax bill will have on our state and local governments. More importantly, this assault negatively impacts hardworking Long Islanders who work day in and out to provide for their families. I stand with Governor Cuomo in his efforts to halt the federal tax assault and protect our residents throughout the State."
North Hempstead Town Supervisor Judy Bosworth said, "The federal government has unfairly targeted New York's hardworking families with the tax law. I commend Governor Cuomo for once again standing up for New York's working families and setting an example for the rest of the nation to follow."
Oyster Bay Town Supervisor Joseph Saladino said, "The elimination of State and Local Income Tax deductions clearly creates a concern for taxpayers who live and work in our state. I look forward to working with Governor Cuomo to protect Long Island taxpayers."