New York Gov. Andrew Cuomo is encouraging members of the New York congressional delegation to fight for their constituents and repeal the Tax Cuts and Jobs Act, which he considers “disastrous.”
The governor has been a strong opponent of the federal tax law since the Republican Party first introduced it. He called it “double taxation” and an “arrow pointed to the heart of New York.” He is primarily against the cap on state and local tax (SALT) deductions.
Tax experts have said the cap on SALT deductions is a “bad deal” for taxpayers in New York, New Jersey, Maryland and California. Based on their analysis, taxpayers in these states will suffer significant tax increases under the Tax Cuts and Jobs Acts.
In an open letter to the state’s congressional delegation on Monday, Cuomo reiterated his position that the federal tax law is an “assault” on New York. The governor noted that home sales in the state, particularly in Westchester County, declined 18 percent last quarter. In other towns, the median sales price also dropped by double digits.
“Some of you voted in favor of this law — a law that weaponized the federal tax system to attack New York and other progressive states … We knew when this bill passed that it was an act of political retribution against New York,” Cuomo said.
Additionally, the governor emphasized that the state is already the top contributor to the federal government — $48 billion annually.
“Absent changes to the state’s tax code, the law’s limitations on the deductibility of state and local taxes would cost New York’s taxpayers an additional $14.3 billion this year,” Cuomo said.
Tax Cuts Jobs Act Threatens New York’s Competitiveness
Furthermore, the governor said the Tax Cuts and Jobs Act “threatens jobs” in New York and investments and services to its residents. It also risks the state’s economic competitiveness over the long term.
Moreover, Cuomo said his administration continues to fight against the federal tax law. New York together with three other states sued the Trump administration, alleging that the law is illegal and a targeted attack.
“I am calling on you to do everything you can to fight in Congress to reverse this devastating legislation and restore fairness for the taxpayers of New York,” Cuomo said.