Gov. Andrew M. Cuomo said he is scheduled to meet with President Donald Trump on Tuesday to press his effort to overhaul Trump’s tax plan, which is driving up federal income taxes for high-income, highly taxed New Yorkers.
Trump’s tax cut package, passed in December 2017, provides a long-term corporate tax break, but helps pay for it by capping the deductibility of state and local taxes, or SALT, on federal income taxes. That is increasing many New Yorkers’ federal income tax bills in areas with high local property taxes and income taxes, such as Long Island, Westchester County and Manhattan.
“To me, there is no more vital, long-term issue for this state than SALT,” Cuomo said.
A week ago, Cuomo blamed the SALT provision and Trump for a $2.3 billion hole in state income tax revenue for December alone. Cuomo said the loss in estimated income tax payments by high-income earners indicates that many top earners may be leaving the state, threatening a long-term loss of revenue. Fiscal analysts, however, have also noted that Wall Street bonuses are down and the economy is slowing.
Last week, Trump said he was open to discussing changes in his tax package. He provided no specifics.
Cuomo said that in his midafternoon meeting with Trump he will press for a full repeal of the SALT provision. He said he has no alternative or compromise to offer, but said Trump would simply have to find another way to fund his corporate tax break.