Gov. Cuomo weighs options to sidestep federal tax overhaul
In response to the new federal tax overhaul that is set to cost New York billions annually, the Cuomo administration released an outline of potential ways in which the state can essentially try to beat the system.
The new tax code is set to benefit many across the country, but analysts say residents in the highest taxed states, like New York, will suffer. The new law caps state and local tax deductions at $10,000.
Gov. Cuomo's administration says the Republican tax law "will cost New York's taxpayers an additional $14.3 billion per year."
"There is a financial hurricane about to hit Long Island," said the governor.
One plan the administration is floating is to shift the state income tax to a payroll tax, and allow businesses to then receive deductions from the federal government, since individuals cannot do so.
"If we can't beat it in court, or repeal it by changing Congress, then we have to find a way to do it within our own tax code," says Gov. Cuomo.
Some lawmakers are already questioning whether or not it can be done in just one legislative session, or at all.
The governor says if this fix, or something similar, isn't enacted, he wouldn't be at all surprised if even more Long Islanders decide to move out of the region.
Small businesses in the state that are already operating during a difficult economic climate are wondering what this plan will mean for them. Tim Feldis' family has owned Feldis Florist since 1922. He says he's glad the governor is considering all options, but he's worried that right now, there aren't many specifics.
"It's just one more thing that we have to somehow figure out," said Feldis. "I spend more time behind a computer trying to keep the business running than I do in front of flowers."