Governor Issues Letter to IRS Calling on Federal Government to Reverse Course
State Files Formal Comments Objecting to Regulations as Baseless and Arbitrary
FY 2019 Budget Created New Funds for Charitable Donations to Protect New Yorkers from Elimination of Full State and Local Tax (SALT) Deductibility
Governor Cuomo: "In taking aim at our charitable contribution programs, the federal government is once again revealing its true hostility toward New York. These proposed regulations continue the politically motivated economic assault on New York that started with President Trump and his allies in Congress. The IRS must not be used as a political weapon."
Governor Andrew M. Cuomo today called on the federal government to withdraw proposed charitable donation regulations that take aim at New York's program to mitigate the impact of the federal elimination of full state and local tax deductibility. The Governor issued a letter calling on Internal Revenue Service Commissioner Charles P. Rettig to reverse course and enclosed the State's formal comments objecting to these regulations as baseless and arbitrary. The public comment period closes today.
The letter coincides with comments submitted by a newly-formed coalition of New York counties, cities, towns, villages and school districts, along with state and countywide professional and advocacy organizations, that is also calling for the withdrawal of the regulations and preservation of full deductibility for voluntary contributions made by individuals to charitable funds established by local and state governments. The coalition comprises Nassau, Suffolk, and Westchester Counties, 17 municipalities, 16 school districts, the Association of Towns of the State of New York, the New York Conference of Mayors, the New York State Association of Counties, the New York State Council of School Superintendents, the New York State School Boards Association, the Association of School Business Officials of New York, and the Westchester Putnam School Boards Association.
The full text of the Governor's letter is available below:
Charles P. Rettig
Commissioner of Internal Revenue
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Dear Commissioner Rettig,
The proposed regulations on charitable deductions are a gross partisan assault on the State of New York. On behalf of the hard-working families in New York, I call you to withdraw these proposed regulations immediately.
These regulations lack any basis in the law, upend decades of precedent without any authorization from Congress, and arbitrarily discriminate against tax credit programs established in New York to protect our taxpayers from the federal government's economic attack on our state.
Last year, that federal government enacted a partisan tax law that specifically targeted New York and other states that did not vote to elect President Trump. In particular, the elimination of full state and local tax deductibility will cost New York families at least $14.3 billion each year, effectively raising our taxes relative to other states and threatening the value of the largest investment held by many New York families, their home.
New York's taxpayers already contribute $48 billion more to the federal government than we get back every year, and this bill reaches even deeper into the pockets of New Yorkers to pay for tax cuts for corporations and other states.
In response to this economic attack, we crafted new charitable contribution programs that fully comport with long-standing principles of federal tax administration.
In taking aim at our charitable contribution programs, the federal government is once again revealing its true hostility toward New York. These proposed regulations continue the politically motivated economic assault on New York that started with President Trump and his allies in Congress. The IRS should not be used as a political weapon.
President Trump and four New York Republican Representatives betrayed their home state when they passed the federal tax bill, and now the Trump Administration is once again putting New York in its sights.
Make no mistake: New York will fight back. This proposal must be withdrawn. And if it is not, we will pursue all options to resist this attack on our State, including litigation if necessary.
Enclosed you will find a more detailed comment from the New York State Department of Taxation and Finance.
ANDREW M. CUOMO