From the beginning, I wanted to support a tax reform plan that would increase economic growth, increase worker paychecks, incentivize small business investment, and ensure New York families are better off. Unfortunately, this plan did not meet all of those criteria.
I remain concerned that as a result of the state’s high income and property taxes, the partial elimination of the SALT deduction effective January 1, 2018 impacts New York families more severely than those in other states. These families have already made financial decisions based on this deduction, and to have it removed without any chance to prepare is unfair.
It's important to recognize that this bill does make positive changes in our tax code that will help American businesses of all sizes and their workers compete in the global economy. In addition, there will be many families and small businesses in the 19th district that will receive a tax cut under this legislation. However, the overall impact of changes to the SALT deduction will accelerate the trend of hardworking individuals and businesses already leaving our state – further eroding New York’s tax base.
I am pleased that changes I advocated for were made to the medical expense deduction, higher education affordability benefits, and private activity bonds in this final version in comparison to the House bill. Each of these provisions were primary concerns of mine because of their impact on families, students, and local economic development.