As the Bush administration looks to revamp the tax code, New York officials say they are particularly worried about one idea being considered: eliminating the federal deduction for state and local taxes.
If the president pursues this plan, New York State would lose about $37 billion per year in federal tax deductions, more than almost any other state, according to Internal Revenue Service data. The change would affect about 3.2 million households in New York, three-quarters of which are middle- and low-income, tax records indicate.
"This change would be one of the worst things for New York to came out of Washington in a long time," said Senator Charles E. Schumer. "But if they take this route they can expect a serious fight."
With a 7.7 percent maximum state income tax rate, the second-highest in the country behind California's 9.3 percent, New York would be especially affected because its residents use those taxes to take large federal deductions. About 38 percent of households in New York file for some sort of federal deduction of state and local taxes.
New York City residents, who also pay city income taxes, would be especially hard hit as they could expect an 11 percent increase in the amount they pay the I.R.S., or an increase of about $3.4 billion, said Ronnie Lowenstein, director of the city's Independent Budget Office.
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Here, lemmie just bend over and spread my cheeks. Especially when I read this yesterday:
WASHINGTON (AP) - The Homeland Security Department has allowed federal grants for improving security at America's ports to be spent on low priority problems rather than the most serious vulnerabilities, the agency's outgoing watchdog says.
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I just love being dry-fucked. So, even though New York is a prime target, and they want to milk us for more taxes, heaven forbid we should get our share of Homeland Security money. You can bet Cheyenne, Wyoming gets more than its share.