MENU
component-ddb-728x90-v1-01-desktop

New York lawmakers debate the GOP tax plan

TAX DEDUCTIONS_frame_111.png

It is a debate brewing in congress that has Sen. Chuck Schumer calling on the New York Delegation to take a stand against the GOP tax plan.

"If they were to all at once to come out and say they would vote against this plan. The republican leadership would have two choices: one, maintain the entire state and local deduction or to let their plan fail," Schumer said.

Schumer said the current House tax plan would eliminate the income tax deduction and cap the property tax deduction many New Yorkers use to offset the state's high taxes.

The Government Finance Officers Association reports that average deduction for New Yorkers in Rep. John Katko's district is just over $12,000.

Katko opposed eliminating the deductions.

He said they are making some headway with the bill.

"We got them to put back in a 10,000 dollars property tax deduction, which is really important if you want to itemize. You can either take the property tax deduction and your interest deduction plus charitable contributions or you take the standard deduction. You have your choice to take one of the two," Katko said.

Congresswoman Claudia Tenney also opposes eliminating the deductions but said compromise could be the road to passage of the bill.

"What I would like to see it lifted at least, removed all together, but ideally raised and I would like to see some kind of compromise on the income tax deduction," Tenney said.

However, Schumer said a compromise is not good for New Yorkers either.

He said it would still lead to higher taxes for the middle class.

Meanwhile, Americans are keeping a close eye on Washington to see what it will all mean for their financial future.

Trending