Statement from Comptroller Scott M. Stringer on President Trump’s Latest Tax Proposal
September 28, 2017
“Since we released our preliminary analyses in March and June, we have been closely watching the tax discussion in Washington. So far, we’ve seen back-of-the-napkin plans to back up sweeping, grandiose rhetoric. That’s still true now while the discussion is evolving. Until we know critical information such as the impact of child care tax credits and income brackets, a full analysis of the plan is impossible.
“In the past, President Reagan and President George W. Bush suggested that tax cuts to the wealthiest would create economic utopias. Instead, they blew holes in the budget and spawned deficits as far as the eye could see. As President Trump outlines his new plan, the same themes are true. This initially appears to be a tax plan written by millionaires, for millionaires – at the expense of the rest of us. It could drive up our debt, deliver massive deficits, and result in draconian cuts to social services. The thought of its impact is deeply alarming, particularly because it comes while we have an income inequality crisis that is spiraling out of control. The benefits of any tax plan have to benefit the worst off among us. They should reward hardworking, everyday Americans. Right now, this proposal — if it can even be called a proposal — does not accomplish that goal.
“For New York, eliminating the state and local tax deductions could have a deleterious impact. This provision deliberately targets New York and the states around us, affecting middle class, working families. That is a massive mistake. As our initial analysis showed, 740,000 — or almost 60 percent — of the almost 1.3 million households in the City who currently benefit from this provision have incomes below $100,000 and could consequently face higher tax bills as a result of this proposal.
“We have long warned that New York City should be preparing for massive cuts to the safety net in order to pay for lower tax liability for the wealthiest. As the tax conversation in Washington evolves, I believe we need to have a constructive, thoughtful, public discussion about how we’re going to prepare for the worst-case scenarios. We will continue to monitor all that comes from Washington to keep New Yorkers informed of how this affects them — and our city.”
In March, Comptroller Stringer released an initial analysis on President Trump’s tax reform blueprint. That analysis can be found here.
In June, Comptroller Stringer issued another analysis on the Trump Administration’s proposal to eliminate the state and local tax deduction. You can find that analysis here.