New York Governor, Andrew Cuomo, said that the city will sue the Federal Government concerning the overhaul of federal tax. The governor termed the levy an unconstitutional one and a veritable assault on the New York metropolis. He said in his State Speech that the Republican-approved tax bill is not proper. The GOP-controlled Congress passed the bill and President Trump signed it. Cuomo is a Democrat. He warned that he would reform the tax code of New York and if possible, the payroll tax as well as a response to the federal action. Cuomo seeks re-election in the latter part of 2018. He is also a possible presidential candidate when 2020 comes.
Cuomo said that his public campaign against the law will be known as “Tax Fairness for All”. He told the audience that he will implement a plan to restructure the present payroll tax and the current income system. The specifics of such a plan will be released during the state budget for fiscal year beginning on the first of April. He said that he will investigate ways to change the payroll tax of the state so that the hit from the federal government is tempered down. The new federal tax law caps the income tax deductions to $10,000 for both local and state taxes. This will hurt New York and higher tax states.
According to Cuomo, New York sends about $40 billion in excess to Washington compared to what the latter pays to the former. He said that this disparity can only get worse under the newly passed tax reform. The GOP understandably have disagreed with all the assertions made by Cuomo. They say that the majority of New Yorkers will enjoy lower income taxes after the new law comes into effect. As per the law, the rates of income taxes have dropped and the standard deduction doubled.
Cuomo said that the state will seek to establish a number of new charitable organizations so that residents could donate to take advantage of income tax deduction. He will also examine the colloquially named “carried interest loophole”. This is a kind of tax break which primarily benefits big companies. A warning issued by the Business Council said that the tax plan will go against companies. This law is a regressive one and will not help to improve the business climate of the city.