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New York Tax Revenues Drop by $2.3 Billion
Cuomo’s preliminary analysis claims much of the impact is coming from a drop in revenues
from the state’s highest income earners most impacted by the loss of write-offs of state and
local tax deductions, known as SALT.
The federal law approved by President Trump and the then-GOP controlled Congress limited
SALT deductions to $10,000.
The loss of revenue from New York’s wealthiest puts New York in a bind because the state
relies on a progressive income tax system that taxes the rich at a higher rate.
One percent of the state’s top income earners provide 46 percent of the state’s personal
income tax revenues, officials said.
Cuomo said Albany can’t go to the well and tax the wealthy again because that would only
worsen the situation, citing “anecdotal” evidence that high-income New Yorkers are
already fleeing the state to lower-tax jurisdictions.