Tax Fairness for All Americans
Under the Trump administration, Washington launched an all-out direct attack on New York’s economic future. The federal Tax Cuts and Jobs Act of 2017 eliminated full deductibility of state and local taxes (SALT), effectively costing New Yorkers $15.3 billion.
What’s worse is that the law disproportionately hurts Democratic states, like New York, which already contributes $35.6 billion more annually to the federal government than it gets back.
To fight back against this economic assault, the Governors of impacted states are working with their Congressional Delegations and Speaker Pelosi to immediately reestablish full SALT deductibility and restore fairness for millions of hard-working American taxpayers.
Response to the Federal Tax Changes A Major Shift in Tax Policy
Expand Charitable Contributions
The FY 2019 Budget creates two new state-operated Charitable Contribution Funds. Taxpayers may claim these charitable contributions as deductions on their Federal and State tax returns.
Alternative Employer Compensation Expense Program
Under the FY 2019 Budget employers would be able to opt-in to a new ECEP structure, and be subject to a 5 percent tax on all annual payroll expenses in excess of $40,000 per employee.
Decouple from Federal Tax Code
The FY 2019 Budget decouples the state tax code from the federal tax code, where necessary, to avoid more than $1.5 billion in State tax increases.