President Trump’s tax plan to remove itemized deductions will cost New York City residents an average of $5,500 per year, Sen. Chuck Schumer said Sunday.
Under the current system, taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes.
The reduction or removal of those deductions would hit New Yorkers particularly hard due to the local cost of living expenses and higher local property tax burdens.
“The plan’s mission is this: massive tax cuts for the very wealthy; crumbs, at best, for everyone else,” said Schumer (D-N.Y.), who was flanked by local homeowners.
He vowed to wage a “strong, strong fight” against the Trump tax plan.
All told, more than 3.2 million New Yorkers claimed state and local tax deductions in 2014, saving $68 billion total, records show.
Eliminating the deductions “would be brutally unfair and hit New Yorkers right between the eyes,” Schumer said.
The plan would cost Long Island residents an average of $4,000 a year, he added.
On top of eliminating deductions, the Trump tax plan also calls for slashing the corporate tax rate to 15% from its present top rate of 35%.
The plan also promises to let companies bring back money that’s been stuck overseas at a “one-time tax” rate, a move that could greatly benefit multinational firms.
One of Trump’s top economic advisers has admitted the proposed tax plan may cause middle-class families to pay more.
“I can’t make any guarantees until this thing is done and it’s on the President’s desk. But I can tell you, that’s our No. 1 objective in this,” Treasury Secretary Steven Mnuchin said on ABC’s “Good Morning America” Thursday.
With News Wire Services