State lawmakers are fighting back after a Republican-led federal tax reform bill was passed and signed into law this week.
The bill caps state and local property tax deductions at $10,000 which could hurt people who live in high tax states like New York.
Assemblywoman Amy Paulin said she would introduce legislation allowing New York residents to itemize their state returns even if they do not itemize their federal returns. The categories of itemized deductions used at the federal level are also used for the New York State personal income tax.
“The new federal tax bill is an assault on New York and my constituents,” Paulin said. “We must take action to change the tax law in New York to make sure that we do not also see an increase in our state taxes as a result of this disastrous federal law. Allowing people to keep itemized deductions on our state returns regardless of how we fill out our federal returns, is one step we can take to prevent this."
Paulin said constituents have told her they are considering leaving New York as a result of the bill.
Sen. David Carlucci (D-Rockland) said he is proposing legislation allowing property taxes no longer deductible from federal income taxes be deducted from state income taxes.
"The GOP tax bill is going to be devastating to residents of New York State," Carlucci said. "Capping deductions for state and local txes at $10,000 is unfair to our middle-class families. said Carlucci said.
Carlucci is also calling for municipalities to allow homeowners to prepay their property taxes before Jan. 1.
Assemblyman Kieran Lalor (R-East Fishkill) said he supports the tax reform bill, even if it is not perfect.
The great majority of Dutchess County residents will get a tax cut," Lalo said. "Their 401ks are already growing because of it. The business tax cuts make the U.S. more competitive with the rest of the world. This will help stop the flow of jobs overseas and likely bring some jobs back."
Sen. Terrence Murphy (R-Yorktown, Sen. Sue Serino (R-Hyde Park) and Assemblyman Kevin Byrne (R-Yorktown) did not respond to requests for comment.
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