ALBANY – President Trump’s tax plan would yield especially difficult returns for New Yorkers, state Controller Thomas DiNapoli reported Wednesday.
While the final details of the tax reform plan have yet to be decided, the outline released by the White House in April would have “significant implications” on the Empire State by eliminating all itemized deductions other than those for charitable contributions, according to an analysis by DiNapoli’s office.
State taxpayers, on average, claimed just under $36,000 in itemized deductions in 2014, the most of any state in the nation and nearly a third higher than the national average, the report found.
Deductions for state and local taxes in New York totaled more than $67 billion, including $47.3 billion for income taxes and $20.2 billion for property taxes.
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“The stakes are high for New Yorkers if these changes are made to the federal tax code,” DiNapoli said.
Manhattan, according to the analysis, had the highest amount of deductions claimed in the state, with just over $85,071 per taxpayer. Westchester County was a distant second at $49,155 per taxpayer.
DiNapoli also warned that Trump’s proposal to reduce the number of tax brackets from seven to three and cut the top rate from 39.6% percent to 35% would mostly benefit wealthy New Yorkers. The state is home to about 10% of nation’s top bracket taxpayers.
DiNapoli also reported that Trump’s plan to double the standard deduction and repeal the Alternative Minimum Tax could benefit low and middle income New Yorkers but he cautioned that more detail is needed on the changes.
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“There is a distinct possibility that President Trump’s plan will hurt New York’s middle class taxpayers and working families and give a windfall to the wealthiest among us,” DiNapoli said. “We really need more clarity on the specifics of the plan to fully assess its impact on New York.”
White House officials did not immediately respond to a request for comment.
The Trump administration has called on Congress to reach an agreement on a tax reform plan before lawmakers leave for their August recess but its uncertain whether the House and Senate will be able to meet that goal.
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