Calls on Congress to Restore Full SALT Deductibility and Stop Disproportionate Economic Attack on Predominantly Democratic States
Following Meeting with President Trump, Governor to Work with Impacted States, New York State Congressional Delegation and Speaker Pelosi
Governor Andrew M. Cuomo today launched a nationwide campaign to fight for tax fairness following yesterday's meeting with President Trump on the devastating impact of the elimination of full state and local tax deductibility, which disproportionately impacted New York and other predominantly Democratic states. Earlier this month, Governor Cuomo and State Comptroller DiNapoli delivered an update on State revenues, after the Division of the Budget observed a decline by $2.3 billion in estimated payments of Personal Income Tax receipts in December and January, which the Governor and Comptroller attributed to the federal tax legislation's elimination of full state and local tax deductibility.
To fight back against this economic assault, the Governor will work with Governors of the other impacted states, the New York State Congressional Delegation and Speaker Pelosi to immediately restore full SALT deductibility and restore fairness for millions of hard-working American taxpayers.
"The disgraceful federal tax assault stole from 12 Democratic states to give to Republican states, and it was a gross injustice," Governor Cuomo said. "This is about money, plain and simple. As Governor of New York, I'm going to rally the other Governors and the other states to say it was a theft and to restore economic equity and fairness."
New York State is already the number one donor state in the nation, contributing $35.6 billion more to the federal government than it receives back. The cap on SALT deductions will cost New Yorkers an additional $15.3 billion.
According to the Government Finance Officers Association, New York has the highest average deduction for state and local taxes, followed by:
While other states have experienced the detrimental impacts of SALT, as the number one donor state, New York continues to feel the disproportionate effect of the deduction in the following ways:
- 52 of New York's 62 counties have average SALT above $10,000.
- The average New York taxpayer has SALT deductions that are more than twice the $10,000 cap.
- New York has the largest percentage of taxpayers getting a tax hike of any state.
- New York represents 7.3% of the pre-cut tax base but gets 5.1% of the cuts, by far the worst relative share of any State.
In February 2018, Governor Cuomo launched the Tax Fairness for New York Campaign to combat the combat the anticipated impacts of the federal tax law. As part of this campaign, the Governor launched a website to inform New Yorkers of the State's efforts to fight the tax law, including a lawsuit against the federal government, a repeal of the law, and an overhaul of the tax code.