Seddio Calls Bush Federal Tax Change Proposal “Raw Deal”
Assemblyman Frank R. Seddio expressed concern that a plan by President Bush’s administration to revamp the federal tax code would cost New Yorkers tens of billions of dollars in tax deductions. If enacted, millions of middle- and low-income households would lose deductions they rely on to help make ends meet, Assemblyman Seddio said.
“One of Bush’s proposals eliminates the federal deduction for state and local taxes,” Assemblyman Seddio said. “The effects of that could be disastrous for New York’s working families and it would be yet another example of the president ignoring the needs of our state. We’re already being shortchanged federal homeland security funding and the lowest-in-the-nation Medicaid reimbursements; this is another bad idea New Yorkers cannot afford.”
Despite being the victims of two terrorist attacks, New York receives less homeland security funding per capita than most states, and was second-to-last in the nation in 2003 Office of Domestic Preparedness Homeland Security grants. New York also suffered this year from the expiration of the Federal Medical Assistance Percentage program, costing taxpayers over $1 billion in lost Medicaid funding for vital health care programs.
According to The New York Times, about 38 percent of households in New York file for some sort of federal deduction of state and local taxes - including property taxes. On average, those households would lose the ability to deduct about $5,600 per year under the president’s plan.
“All New Yorkers, from the governor on down, must protest this assault on New York taxpayers,” Seddio said. “Pataki’s political allies have control of both the White House and Congress, and while Pataki was quick to campaign for them, he hasn’t done anything to help kill this raw deal for hard-working New Yorkers.”