Bush Panel’s Income Tax Proposals Take ‘Billions’ From NYC Taxpayers
by john toscano

Declaring that the proposals of President George W. Bush’s tax reform panel are “simply unacceptable,” City Councilmembers David Weprin, at left and Joel Rivera called for their rejection in a council resolution.

Declaring that the proposals of President George W. Bush’s tax reform panel are “simply unacceptable,” City Councilmembers David Weprin and Joel Rivera called for their rejection in a council resolution.

Weprin, council Finance Committee chairman, and Rivera, Majority Leader, charged that if the president’s tax changes are adopted they will cost New York City taxpayers billions of dollars and make it virtually impossible for the city to fund city services.

The President’s Advisory Panel on Federal Tax Reform has proposed the elimination of the deduction of state and local taxes by New York State taxpayers on their federal tax returns. It also proposes replacing the deduction of mortgage interest by homeowners. Both are major benefits for taxpayers in reducing their federal income taxes.

Weprin (D–Hollis) and Rivera (D–The Bronx) said the deduction of state and local taxes on federal tax returns currently keeps $8.5 billion in the pockets of New York City businesses and residents that would otherwise exacerbate the city’s balance of payments deficit with Washington.

The elimination of the residential mortgage interest deduction up to $1.1 million will lead to another $2.2 billion in revenue being sent from city taxpayers to Washington.

“New York City already sends Washington $13 billion more each year than we get back in aid and services and we are already grossly underfunded by the federal government in many areas, such as homeland security and Medicaid,” Weprin charged.

“And after all of this, the federal government wants to squeeze millions more from the pockets of deserving New Yorkers. This is simply unacceptable. The proposals of the President’s Federal Tax Reform Panel must be rejected.”

Council Speaker Gifford Miller, who cosponsored the resolution, stated: “New Yorkers deserve to keep their hard-earned money, not have it stripped away from them by the federal government. The recommendations made by President Bush’s advisory panel are detrimental to our entire city, and will cost us billions of dollars in addition to the billions we already send. These proposals must be rejected.”

Rivera stated, “The President’s Federal Tax Reform Panel adds up to only one thing: bad news for New Yorkers. These recommendations hurt our economy, hurt potential investments and, as a result, hurt the future of this great city.”

The resolution is scheduled to be heard by the council Finance Committee, chaired by Weprin, on December 12. The entire New York City congressional delegation has been invited to attend.

Meanwhile, the president’s panel is soliciting comments on the two proposals, which are among many that were made. No date has been set for adoption or rejection of the proposals.