NEW YORK — A tax overhaul proposal from Republicans in Washington would strike directly at the economic heart of New York and hurt millions of state residents, Gov. Cuomo said in a Tuesday letter to President Donald Trump.
The plan, which would do away with a deduction for state and local taxes paid, is aimed at simplifying taxes. But audits show it would also raise taxes for about 3.3 million New Yorkers.
“By eliminating or rolling back state and local tax deductibility, Washington is sending a death blow to New York’s middle class families and our economy,” Cuomo said. “It’s clear this is a hostile political act aimed at the economic heart of New York with no basis on the merits.”
House Republicans are set to unveil their tax bill Wednesday. Cuomo has asked Trump to intervene in the plan, calling on the president’s New York roots.
State residents could lose more than $72 billion in reported deductions for income and property taxes. The money from New York would act as a “piggybank” for other states, Cuomo said. The tax plan also targets California unfairly.
“To be fair, this is not a new idea to pillage New York and California and send their wealth to other states,” Cuomo said. “Congress tried it under President Reagan, but the gross injustice of it caused all but the most partisan and callous officials to drop support.”
Republicans in the House largely do not support the tax plan as is. Reps. Dan Donovan, John Faso, Peter King, Claudia Tenney, Elise Stefanik, John Katko and Lee Zeldin have all urged U.S. Treasury Secretary Steve Mnuchin to reconsider plans to end the deduction.
The other two New York Representatives – Congressmen Chris Collins and Tom Reed – are, according to Cuomo, “the Benedict Arnolds of their time.”
“Our Congressional representatives should be saying it’s time New Yorkers get their money back,” Cuomo wrote to Trump. “New York needs your help. You can stop this. And you should not just as an American, but as a New Yorker.”