February 5, 2019
New York State saw personal income tax revenues decline by an estimated $2.3 billion year over year, according to Gov. Andrew Cuomo and State Controller Thomas DiNapoli. Cuomo put the blame squarely on the elimination of the State and Local Tax (SALT) deduction in the 2017 tax reform bill enacted by Congress.
“We are now seeing in the receipts the effect of SALT,” Cuomo said. “The receipts are down. They’re down in both the withholding component and in the estimated payments that we’re seeing coming in.”
He added, “SALT encourages high-income New Yorkers to move to other states… even if a small number of high-income taxpayers leave, it has a dramatic effect on this tax space.”
As a result, Cuomo said state spending on areas such as education, health and infrastructure would be impacted. “If you are losing tax revenue, it’s going to affect your budget overall,” he said.
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