New York State Comptroller Tom DiNapoli says New York property owners stand to lose more than $72 billion in deductions if the federal government abolishes the deduction for state and local taxes.
A report issued today says the proposal in the Republican tax reform plan could affect state and local government finances in ways that are hard to predict. DiNapoli and his staff say Washington should proceed with caution because any changes they make will have far-reaching implications.
State income tax and local property taxes are the Number One deduction New Yorkers claim on the federal tax returns. The Republican tax plan nearly doubles the standard deduction, but DiNapoli says that won’t be enough to make up for what New Yorkers will lose if the state and local deductions go.