Reed-supported tax bill will cost New Yorkers
The House tax bill that Rep. Tom Reed supports raises taxes on New Yorkers while giving a $1.5 trillion tax cut to corporations. That is the bottom line.
Inexplicably, the bill continues to allow corporations to deduct state and local taxes from federal income calculations, but caps or eliminates individual New Yorkers’ ability to deduct their state and local taxes. This means nearly 60,000 taxpayers will be double-taxed in the counties Reed represents, costing them more than $2,500, on average.
Under this plan New York loses far more than it gets back. Millions of New Yorkers would lose $72 billion in federal tax deductions.
Even if you do not itemize on your federal taxes, the GOP plan is a wolf in sheep’s clothing. Per the Joint Committee on Taxation, the official nonpartisan scorekeeper for tax legislation in Congress, taxes on households earning under $40,000 will increase by 2023, as a family credit expires and inflation indexing changes take effect. The tax cuts for corporations do not expire.
Further, the plan will add $1.5 trillion to the national debt over 10 years, according to the Joint Commission on Taxation. All of us will be stuck holding the bill. The 10-year budget blueprint passed by the House with Reed’s support would partially finance the plan with cuts to Medicare and Medicaid – programs that the 99 percent depend on.
The House GOP tax plan is a net loser for New York taxpayers, transferring billions of dollars to other states. We are already the nation’s largest donor state, committing $48 billion more to the federal government than we get back in federal spending.
Most of our congressional delegation understands that this bill raises taxes on millions of New Yorkers and are fighting on our behalf. Reed instead chooses to support a plan than benefits corporations and other states at the expense of his own constituents.
Robert. F. Mujica Jr.
New York State Budget Director