NY May Scrap Its Income Tax for a Payroll Tax

 

By Joseph Spector, Gannett Albany 

ALBANY -- New York may end its income tax and instead expand its payroll tax as a way to outmaneuver the new federal law that limits deductions for state and local taxes.

Gov. Andrew Cuomo said Wednesday during his State of the State address that he is exploring how to make the complicated switch, joining other high-tax states in considering how to protect residents' tax deductions and state revenue.

California and New Jersey leaders have also discussed similar steps, such as programs to allow people to pay charitable contributions to their state governments -- rather than pay income taxes.

"It's a question of our competitiveness long term and preserving the strength of New York state and New York's state economy," Cuomo said, "at a time when we have federal government that is giving other states a structural competitive advantage against us."

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Source: WGRZ.com (via Empire Report New York)