Cuomo calls on Biden administration to end SALT as he signs lower middle class income tax, property tax credit into law (New York: middle-class)

[Aeran]

https://www.amny.com/news/cuomo-call...-tax-into-law/

Though steps have been made to help New York’s middle class, Governor Andrew Cuomo called out the Biden administration for not fully repealing the SALT deduction limits passed under the Trump administration.

Governor Cuomo stated that two big changes were made to the budget, the first of which was lowering the income taxes of middle-class New Yorkers. Under this new bill in the New York state budget, the income tax rates dropped from 6.09% to 5.97% for those filing jointly in the $43,000-$161550 income bracket, and for individuals in the $21,400-$80,650 income bracket.

Those in a higher tax bracket also saw a slight decrease. The taxpayers filing jointly in the $161,550-$323,000 income bracket and individuals in the $80,650-$215,400 bracket saw a slight decrease from 6.41% to 6.33%. The changes to the middle-class tax bracket will help 4.8 billion New Yorkers save over $2.2 billion this year.

Second, Cuomo announced that the state is enacting a Middle Class Property Tax Credit. New York has some of the highest property tax rates in the country: the average middle-class downstate New Yorker will pay $10,500 a year in property tax compared to $7,800 a year in income tax.

[markjames68]

I didn’t realize NY had 4.8 billion people (realize it’s in the original article)

The reduction is window dressing. You’re talking $80 on 100K.

No wonder he wants SALT back.

[ckhthankgod]

Perhaps it was a way to bank on it in order to help keep the rich/wealthy in the state, as it seems that they benefitted the most from SALT.

[markjames68]

Originally Posted by ckhthankgod

Perhaps it was a way to bank on it in order to help keep the rich/wealthy in the state, as it seems that they benefitted the most from SALT.

I know, but saving $80 when other fees will likely increase even more is fool’s logic.

But I suspect most people won’t do the math and will applaud him for it.

[Aeran]

https://www.amny.com/news/suozzi-no-...alt-deduction/

Suozzi says he won’t support Biden infrastructure plan if prez doesn’t agree to abolish SALT deduction

[BugsyPal]

Here's the deal as linked Crain's NY article spells out: https://www.crainsnewyork.com/politi...-spending-plan

(If you cannot open link look up story on internet, it's not behind paywall for me).

See also: https://www.bankrate.com/taxes/sales-tax-deduction/

NY like many northeast states along with CA and a few other liberal democrat socialist bent places have long taxed the *F* out of inhabitants and businesses. They do this because running a welfare state requires huge infusions of cash taken from those that have to be given to those that don't.

That being said each increase in taxes, fees, surcharges or whatever is done with a wink and nod. States raise rates knowing those exposed to some extent could deduct things on federal taxes which provided some sort of rebate. SALT deduction cap has unclothed that nakedness in that those who are being soaked for local taxes now have their eyes opened.

Economists on both sides of fence have been calling for ending or restricting at least two federal tax deductions; home mortgage interest and state/local income taxes. Both are seen as (rightly) benefiting higher income households, and cause distortions in federal tax code.

Problem is going back to early 1900's when federal income tax came into being (and thirty years later for sales taxes), both have existed for decades and were in large part needed to overcome (mainly GOP) objections to creating a federal income tax scheme at all.

Over years as standard deduction has increased fewer households have itemized on their federal taxes. After 2017 tax "reform" even fewer could, hence all the noise about SALT deduction caps.

New York democrats are in a tight spot; under King Cuomo they've taxed, levied fees, and surcharged nearly everything but breathing in this state, and as result people were already leaving. Then came SALT deduction caps *and* pandemic piling on...

Democrats picked up several House seats in last election in large part based upon promises they would repeal SALT tax deductions, good luck with that.

[hotkarl]

Whatever he can do to deflect from his investigations and accusations.