New York Governor’s payroll tax proposal meets opposition New York Governor’s payroll tax proposal meets opposition

New York Governor’s payroll tax proposal meets opposition
06 Feb 2018

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

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

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.

 

 

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