Binghamton Mayor Rich David is joining the chorus of lawmakers who oppose the Republican tax plans in Congress.
David said the plan is unfair to New Yorkers, especially the limit to state and local tax deductions (SALT). The SALT deduction allows taxpayers who itemize their taxes to deduct their state and local taxes on their federal return. This helps offset the burden in high tax states like New York.
“This is something that we’re very concerned about,” David said. “When the city, the county, the school district talk about how to provide tax relief, with regard to our own budgets, it is counterproductive then at the federal level when you eliminate deductions that are very important to local taxpayers.”
David said the deduction protects people from double taxation. That’s when someone is taxed twice on a single source of revenue. Like paying both federal and state income taxes.
Even more, the Republican said the plans hurt blue states, like New York and California, to offer relief to red states in the south and Midwest.
“People in New York State and the City of Binghamton and Broome County shouldn’t be paying more or have their deductions jeopardized so tax relief can be provided elsewhere in the nation,” David said. “That’s not fair.”
David said New York already pays more than its share in federal taxes.
The Mayor is also opposed to a plan to eliminate the historic tax credit, which is used to renovate rundown historic districts across New York. He’s worried that eliminating that credit will make it more difficult to fight blight in cities like Binghamton.