New York budget deal aims to reject GOP tax law

New York Gov. Andrew Cuomo (D) announced a state budget deal on Friday that aims to curb the impacts of the Republican-led tax overhaul on New Yorkers.

The proposed workarounds come months after President Trump signed the new federal tax bill into law. That measure caps the amount of state and local taxes people can deduct from their federal taxes — a provision that particularly impacts taxpayers in high-tax states like New York.

Cuomo has railed against the GOP tax plan, particularly its elimination of full state and local tax deductibility. 

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“New York will also become the first state to implement new measures to shield families from the devastating federal tax law’s elimination of full state and local deductibility — an economic arrow aimed at the heart of this state’s economy,” Cuomo said in remarks at the state Capitol.

Under Cuomo’s proposal, the state would create two new charitable organizations for health care and education. Taxpayers who donate to these charities would be able to deduct contributions from their federal and state taxes.

At the same time, the proposal authorizes school districts and local governments to establish charitable funds. Contributions to such funds would provide a reduction in local property taxes through a local credit, Cuomo’s office said.

The budget would also allow for employers to opt into a payroll tax to replace an employee-side income tax.