President Trump’s newly announced tax plan ‘deliberately targets’ New York and could raise taxes for more than a million residents, officials said.
His plan, which would do away with a deduction for state and local taxes paid, is aimed at simplifying taxes so that, as Trump put it, “the vast majority of families will be able to file their taxes on a single sheet of paper.”
But about 1.3 million households in New York City alone could face higher taxes as a result of the proposal, Comptroller Scott Stringer said. Nearly 60 percent of those households have incomes below $100,000. Statewide, about 3.2 million people claim the deductions.
“This provision deliberately targets New York and the states around us, affecting middle class, working families,” Stringer said. “That is a massive mistake.”
There’s still a ways to go before knowing exactly how Trump’s plan will impact New Yorkers. His proposal, announced in a speech Wednesday, has a lot of gaps.
“So far, we’ve seen back-of-the-napkin plans to back up sweeping, grandiose rhetoric,” Stringer said in describing it.
The president’s plan does feature a nearly $6 trillion tax cut. He said it will provide relief for the middle class.
Experts aren’t so sure. The National Conference of State Legislatures says “tens of millions of middle-class taxpayers of every political affiliation” would pay more taxes if the state and local deductions are eliminated.
It will be “highly damaging and devastating” for New Yorkers, Gov. Andrew Cuomo said. He said he would challenge the plan as double taxation.
“They literally want to tax you on the taxes you pay,” Cuomo said. “I believe it’s unconstitutional. I believe it’s illegal.”
The plan to slash taxes could also drive up the country’s debt and result in massive cuts to social services, Stringer warned.
“This initially appears to be a tax plan written by millionaires, for millionaires – at the expense of the rest of us,” Stringer said. The thought of its impact is deeply alarming.”
The Associated Press contributed to this report.