The New York State Department of Taxation and Finance has released a preliminary report to outline options for state tax reform in response to federal tax legislation. The report outlines a series of proposals for consideration and comment. They include creating additional opportunities for charitable contributions to the state that would be deductible from federal adjusted gross income; adopting an employer compensation expense tax, including the possibility of a voluntary employer opt-in system; and the option of adding tax deductibility through a new statewide unincorporated business tax. The report was released on Wednesday at the direction of Governor Andrew Cuomo.
Governor Cuomo released the following statement on the Tax Department's report:
The federal tax plan is a devastating and targeted attack on New Yorkers that threatens the economic competitiveness of our state. I thank the state Department of Taxation and Finance for their hard work and diligence in developing this report. With this blueprint as a foundation, we will work with experts, the Legislature, employers, taxpayers, and other stakeholders to develop and implement changes to the tax code that protect all New Yorkers. I will not stand by as partisan politics in Washington seeks to threaten the people of this state.
Click here to see the entire report.