The leader of New York state’s Senate has said he opposes Governor Cuomo’s proposal to impose a new payroll tax.
The suggested levy would offset changes to the new federal tax code that places limits on state and local deductions.
"Just the notion of a payroll tax scares me… I don’t see an appetite for doing something like that," Senate Republican Majority Leader John Flanagan said at a breakfast event at the New York Athletic Club.
The new tax law approved by President Trump and the Republican-led Congress puts a US$10,000 limit on state and local tax deductions, increasing the federal tax liability on higher-income New Yorkers. Cuomo has proposed bypassing these limits by shifting state tax collection to a new payroll tax, which would still be deducted on federal returns.
But according to the New York Post, Flanagan said the change was a complicated one and taxpayers might not be pleased at seeing a drop in their income or take-home pay as a result of more money being withheld to cover the levy.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
The leader of New York state’s Senate has said he opposes Governor Cuomo’s proposal to impose a new payroll tax.
The suggested levy would offset changes to the new federal tax code that places limits on state and local deductions.
"Just the notion of a payroll tax scares me… I don’t see an appetite for doing something like that," Senate Republican Majority Leader John Flanagan said at a breakfast event at the New York Athletic Club.
The new tax law approved by President Trump and the Republican-led Congress puts a US$10,000 limit on state and local tax deductions, increasing the federal tax liability on higher-income New Yorkers. Cuomo has proposed bypassing these limits by shifting state tax collection to a new payroll tax, which would still be deducted on federal returns.
But according to the New York Post, Flanagan said the change was a complicated one and taxpayers might not be pleased at seeing a drop in their income or take-home pay as a result of more money being withheld to cover the levy.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
