Governor Andrew M. Cuomo today announced that he will
propose legislation to further decouple New York State's tax code from the
federal code if President Trump moves forward with a plan for a $100 billion
capital gains tax cut, ensuring New York does not follow suit in this reckless
giveaway to the rich. The Governor also called on Congress to immediately block
any attempt by President Trump to unilaterally cut taxes for the nation's
wealthiest 1 percent in violation of the Constitution.
"After running on a scam platform of fighting for the
middle-class, President Trump is again firing a missile at the heart of our
working and middle-class New Yorkers," Governor Cuomo said. "I call
on Congress to block any illegal attempt by President Trump to enrich his
friends at the expense of the American people. If the President moves forward
with his $100 billion tax cut for the rich, I will propose legislation to
decouple our state's tax code and ensure New York remains true to its values as
a progressive beacon for the world."
"President Trump is looking to hurt middle-class New
Yorkers to benefit the wealthiest 1 percent in the nation," said
Lieutenant Governor Kathy Hochul. "The Governor and I are calling on
Congress to reject any action by the Trump administration that is a direct
attack on our state and our residents. We filed a lawsuit against the SALT
deduction and enacted legislation to curb the harmful effects of these actions.
We will not stop fighting to protect taxpayers from the policies that threaten
to roll back our progress."
President Trump recently asked the U.S. Department of
Treasury to look into unilaterally slashing capital gains taxes by adjusting
the levy for inflation, which would lead to approximately $100 billion in tax
cuts over the next ten years. The cuts would disproportionately benefit the
richest 1 percent nationally, with 80 percent of the proposed tax cuts
benefitting the wealthiest 1 percent in New York and 90 percent benefiting the
top 5 percent. The State Department of Tax and Finance estimates that this
proposal would reduce state tax revenues by up to $500 million annually, absent
state legislation.
Currently, because of the way the state tax code's
definition of capital gains is coupled with the federal tax code, New York
would automatically also adjust capital gains for inflation—delivering an
additional tax cut to the top 1 percent on the backs of New York's middle
class. Decoupling the state definition of capital gains from the federal tax
code will ensure that, regardless of any windfall President Trump's $100
billion tax cut might give to the richest corporations and CEOs, they won't
receive the same in terms of state taxes.
