New York State Assemblyman Fred W. Thiele Jr. weighed in on the Republican tax bill expected to be passed this week in Congress, saying it would favor wealthier taxpayers and harm Long Island residents. “There can be no question that for Long Island the bottom line will be devastating to the local economy,” Mr. Thiele said in a release.
Although the bill reduces individual tax rates across every income bracket and raises the standard deduction, for most Long Islanders, who own a house or itemize deductions, the new tax bill will result in a tax hike, Mr. Thiele continued. He noted that a $10,000 cap on the deductibility of state and local taxes would harm at least half of all Long Island homeowners because 46 percent of them pay more than $10,000 in property taxes.
In addition, the mortgage interest deduction on new mortgages would only apply to mortgages of up to $750,000.
Tax bill supporters have argued the federal government “should not subsidize ‘high cost’ states” by allowing the deductions, Mr. Thiele continued. “They are just wrong. According to the Rockefeller Institute, each year New York State already sends $48 billion more in taxes to Washington than it gets back in services,” he said. “We are subsidizing other parts of the nation with our hard-earned tax dollars.”
Mr. Thiele concluded, “It is no accident that the bulk of benefits will accrue to the ‘red’ states with the ‘blue’ states picking up the tab. All of our children will pick up the tab for the $1 trillion hole this will create in the federal budget. Those who perpetrated this ill-considered legislation must be held accountable in 2018.”