A report by Governor Cuomo’s tax department lists ways that New Yorkers could get around the loss of some of their state and local tax deductions under the new law. But all of them come with complications.
New York State Comptroller Tom DiNapoli warns of a “problematic” budget season, as the state faces a structural deficit, changes to the federal tax code, and uncertainty over continued funding from Washington.
Governor Cuomo, in his State of the State speech this week floated the idea of converting the state income tax to a payroll tax to help reverse the new federal law that limits deductibility for state and local taxes. Many support the concept, but businesses say it’s not so easy to make the change and it could bring unforeseen complications.