Tax Reform Bill Could Cost New Yorkers Big

New Yorkers might have a little -- or in some cases, a lot -- less in their wallets if the tax reform bill approved by the Senate becomes law.

U.S. Sen. Chuck Schumer has called the tax reform bill, the GOP Tax Scam.

U.S. Sen. Chuck Schumer has called the tax reform bill, the GOP Tax Scam.

Photo Credit: File photo

The Republican-led bill eliminates the state and local income tax deduction and caps the property tax deduction at $10,000 which critics say would hurt residents of high tax and high-cost areas- like the suburbs of New York City.

According to the Internal Revenue Service, 47 percent of Westchester residents take the SALT deduction, at an average of $34,300. 

The bill could see home prices fall 10 percent and impact state and local governments ability to pay for infrastructure improvements, according to one economic analysis featured in the New York Times. 

The state could benefit from the reduction in the corporate tax rate with Wall Street investors getting higher returns and bigger bonuses, giving them more money to spend in New York, according to the Times.

Sen. Chuck Schumer has called the bill the GOP Tax Scam and criticized the Republicans for rushing the bill through.

"Tax reform is an issue that is ripe for bipartisan compromise," Schumer said. "There is a sincere desire on this side of the aisle to work with the GOP, particularly on tax reform, but we have been rebuffed, time and time again."

On Monday, Schumer said his office has received more than 400 phone calls in one day about the bill.

Gov. Andrew Cuomo has also criticized the tax bill. Cuomo criticized Republican lawmakers who voted for the bill. He said Rep. John Faso (R-Kinderhook) should resign for not doing enough to stop the bill, even though Faso voted against it.

Faso, who said he has no plans to resign, said he opposes eliminating the state and local income tax deduction and would not support the bill the Senate passed.

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