New York Governor Wants To Close The Tax Loophole For Carried Interest

New York Governor Wants To Close The Tax Loophole For Carried Interest

It also outlines options for an unincorporated business tax, charitable contributions to the state, and a number of conformity issues for the state tax code. The employer could still deduct that payment from its federal tax liability under the new Republican plan.

State Assemblyman Brian Kolb, R-131 of Canandaigua, the Assembly's minority leader who also is seeking the Republican nomination to challenge Cuomo in the 2018 gubernatorial election, said Tuesday that the governor needs to look in the mirror when it comes to New York's challenges. One of the proposals in the report would keep the state's current income tax and levy a payroll tax on employers based on each employee's tax withholdings.

The employee would still be responsible for paying state income tax on their $94,000 in earnings, but would receive a tax credit from the state to make up for it - ultimately bringing them back to the same take-home pay as before.

Hard up for cash, Gov. Cuomo is trying to sneak through a $1.5 billion "stealth" income-tax hike - on top of $1 billion in other tax bumps.

"While the federal government stacks the deck in favor of the wealthy and corporations at the expense of the middle class, we are taking action to protect hardworking New Yorkers and ensure fairness and equality", Governor Cuomo said. "The breadth of options represent the complexity in addressing the challenging road the state is facing", he said.

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DeFrancisco disagrees with Cuomo on the federal tax law.

Personal income tax collections were strong in December, but beyond that, it's anybody's guess. "It's so complicated, it would be repellent in its own right", said E.J. McMahon, the founder of the Empire Center for Public Policy, a conservative think tank.

The report from the Taxation and Finance Department lays out a number of options for shifting income-tax costs to the employer payroll tax, which appears to acknowledge the complexity of such a move. "These state investments will assist NY airports in achieving their mission, which is to further economic development". The Governor has traveled across NY to warn against reforms to the tax code that would increase taxes on New Yorkers by $14.3 billion. This proposal could raise almost $1.1 billion annually and help ease the impacts of the federal tax plan.

And regardless of where it ends up, the federal changes promise to put a dent in the pocketbooks of New York's taxpayers, at least those who lose out on the higher deductibility.

The governor's office and the state Legislature have a $4.4 billion deficit while anticipated revenue is $1 billion.

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