The tax overhaul plan passed Tuesday in the House of Representatives is drawing a mostly negative reaction from the state’s union and business leaders.
The president of the state’s AFL-CIO, Mario Cilento, says the measure is a gift to the wealthy and corporations, and while some union members in New York may see a temporary increase in their paychecks, it will not equal the amount that they’ll lose when they can no longer deduct their state and local taxes from their federal tax payments.
“You might see some reductions in the short term week to week, but when you file for your taxes next year, you’re not going to get the same returns that you did in previous years,” Cilento said. “So in fact, overall, you’re going to lose money.”
Cilento, says union members “will not forget” the four New York congressmen and women who voted for the bill: Congressmen Chris Collins, Tom Reed and John Katko and Rep. Claudia Tenney, calling it an act of “betrayal.”
The state’s Business Council praises parts of the bill, saying the lowering of the corporate tax rate “corrects years of inequity” and puts the nation on a “more equal footing” with the rest of the world.
The group says while the majority of New Yorkers will see tax cuts beginning next year, the loss of the deduction for state and local taxes will have “adverse consequences for the state’s economy” and will negatively affect the state budget.