NEW YORK — State residents could lose more than $72 billion in reported deductions for income and property taxes under President Trump’s proposed tax plan, according to a report from state Comptroller Thomas DiNapoli.
About 3.2 million people statewide claim the local deductions and could face higher taxes as a result of the proposal. Supporters of Trump’s plan say it would increase the standard deduction and reduce business taxes.
“Washington should proceed with caution, because these and other changes have far reaching implications that not only hit the bottom line for taxpayers, but could affect state and local finances in ways that are hard to predict,” DiNapoli said.
State officials have previously announced opposition to the plan. Sen. Chuck Schumer and Gov. Andrew Cuomo urged the entirety of the state’s congressional delegation to oppose the tax plan. Reps. Dan Donovan, John Faso, Peter King, Claudia Tenney, Elise Stefanik, John Katko and Lee Zeldin wrote to U.S. Treasury Secretary Steve Mnuchin in June about the deduction.
If the plan from the White House does pass, Manhattan taxpayers would be lose the most, DiNapoli’s report shows. They’d lose an average deduction of $60,384. Westchester and Nassau County residents would lose average deductions of $34,345 and $23,586, respectively.
Negotiations over the proposal are moving ahead in Congress. The House of Representatives narrowly passed a budget resolution Thursday allowing Congress to fast-track tax reform. The Senate already passed the legislation.