Assembly Speaker Carl Heastie issued a letter to the U.S. House of Representatives Speaker Paul Ryan to express his concern over the cumulative impact of the tax reform proposals outlined in the "Unified Framework for Fixing our Broken Tax Code." The proposal includes a plan to eliminate the state and local taxes deduction that benefits many New York families.
"The Assembly Majority has long been committed to fighting for policies and tax structures that put Families First," said Heastie. "Speaker Ryan has touted that the plan will help Americans bring home bigger paychecks. However, hardworking New Yorkers would experience quite the opposite. It is very clear to us and many other leaders across the state that these proposals would have a significant and unfair economic impact on middle-income families in New York."
According to a recent analysis by the New York State Department of Taxation and Finance, the elimination of the state and local tax deduction will cost New Yorkers more than $17.5 billion in additional taxes on an annual basis. As currently proposed, over 1.8 million of New York's middle-income families (those earning $50,000 to $150,000) will see an average tax increase between $1,299 and $2,688. In addition, Heastie calls for the preservation of the existing home mortgage interest deduction so that families can continue to experience the stability that homeownership offers.
New Yorkers already make extraordinary contributions through tax payments to the federal government each year. According to a report issued by the New York State Comptroller Thomas P. DiNapoli, in FFY 2016 New Yorkers sent nearly $41 billion more in taxes to Washington than they received in federal spending in return. Eliminating critical tax deductions for hardworking families would only further widen this gap.