1.26.18 – Sen. Felder’s response to federal tax bill unanimously passes State Senate

Multiple publications covered the State Senate’s unanimous passage of S6974A, legislation authored by Sen. Felder that responds to Congress’s recently passed tax plan. Selections from recent reports on the legislation follow:

(1) From the Albany Business Review:

As Washington fights over issues like immigration, Albany, New York, has united in reacting to the federal tax reform.

The latest step came this week when the state Senate unanimously approved a bill that aims to protect New Yorkers from paying $1.5 billion more in state taxes as a result of the federal changes.

The bill, introduced by Sen. Simcha Felder, a Democrat of Brooklyn, would amend the state’s tax law to calculate personal income taxes based on federal code as of Dec. 1, 2017. That would hold steady the itemized deductions available.

It would also allow taxpayers to itemize their taxes on a state level even if they don’t itemize on their federal returns. Those changes will separate the state tax code from the new federal law, protecting residents from higher state taxes.

(2) From The Yeshiva World News:

Senator Simcha Felder’s (D-Midwood) legislation (S.6974) was passed unanimously by the Senate on Tuesday. The bill saves hardworking New York taxpayers from millions in additional state taxes.

Under Senator Felder’s leadership and in a show of unity, Republican, Democrat and IDC Senators joined to protect New Yorkers from the toxic trend of overtaxing.

“We can point a finger at Washington and scream and yell, but by doing nothing to address the issue we would be equally to blame for hurting hardworking New Yorkers,” said Senator Felder.

Felder’s legislation protects over 5 million tax filers in New York who would be on the hook for an additional $800 million in taxes and saves another $400 million for New Yorkers who itemize. All considered, the total savings of this legislation is estimated at a staggering $1.5 billion to taxpayers.

(3) From The New York Post:

The State Senate unanimously approved a bill Tuesday to “decouple” the state’s income tax from federal returns, which would save residents an estimated $1.5 billion if enacted.

Under the current code, New York taxpayers can itemize deductions on their state taxes only if they do so on federal taxes.

But the new federal tax overhaul limits state and local deductions to a total of $10,000.

Without a chance, the same $10,000 limit would apply to the state returns and cost taxpayers $1.5 billion, according to state Sen. Simcha Felder (D-Brooklyn).

(4) From Newsday:

ALBANY — The state Senate took the first step Tuesday toward upending what it called a hidden aspect of the newly adopted federal tax plan — one that, if unaddressed, could result in New Yorkers paying more than $1 billion in extra state taxes.

At issue is the loss of federal deductions for some New Yorkers (especially those with high property taxes) under the new federal law signed by President Donald Trump and how that might trigger a surprising tax hike on their state returns.

State law mandates that adjusted gross incomes reported on state and federal returns must match. The new federal law limits deductions for state and local taxes paid to $10,000, meaning fewer deductions and higher reportable incomes for New Yorkers who pay more than $10,000.

And if you have to report a higher income on federal returns, then you have to on state returns as well, under current law, meaning a bigger tax liability.

The Senate bill, approved in a 60-0 vote, would “decouple” state codes from the new federal tax code and instead tie them to the federal law on the books as of Dec. 1, 2017.

By doing so, the bill would do three things: allow those with state and local taxes of greater than $10,000 to fully deduct those expenses on state returns; permit residents to itemize state tax returns even if they didn’t itemize federal returns, and let more single householders to claim the standard deduction on state returns…

If New York does nothing to change its state tax code, residents will be endure a double whammy of a tax hit, said the sponsor of the measure, Sen. Simcha Felder (D-Brooklyn).

“Right in our backyard, we’re facing the possibility of New Yorkers having to pay another $1.5 billion if we don’t act,” Felder said after the Senate vote. He said state residents shouldn’t be “collateral damage” of the federal law.

— Posted on 1.26.18 by JVS

1.22.18 – More coverage of Felder’s bill responding to Republican tax package

Two articles on 1.22.18 noted State Sen. Felder’s legislation responding to the Republican tax package passed in Washington:

(1) From the Albany Times Union on 1.22.18:

ALBANY – Gov. Andrew Cuomo wants to overhaul the state tax system by swapping state income for payroll taxes, which remain deductible under the new federal tax code.

But lawmakers are already offering up their own alternative ideas, including measures to “decouple” the state tax deductions from the federal rules.

At least three bills, from Westchester Democratic Assemblywoman Amy Paulin, Brooklyn Democratic Sen. Simcha Felder and Senate Independent Democratic Conference member David Carlucci, would accomplish this.

Underlying their proposed bills is a phenomenon that has drawn scant attention but which could cost New Yorkers millions in additional taxes if not addressed.

State income tax deductions in New York largely conform to the federal rules. Because of that, state income taxes, like their federal counterparts, are now subject to a $10,000 cap on local property tax deductions.

Unless New York changes its tax code, lots of New Yorkers would get a double hit — since they would face the new $10,000 limit on both state and federal taxes.

(2) From WGRZ in Buffalo on 1.22.18:

Sen. Simcha Felder, D-Brooklyn, has proposed legislation to ensure New Yorkers are held harmless under the federal plan. Assemblywoman Amy Paulin, D-Scarsdale, also said she plans legislation on the issue.

“I’m not interested in whose fault it is. Let the governor and the president fight that out,” Felder said in a statement in November when he first introduced a bill on the issue.

“But we cannot stand by and force New Yorkers to become the collateral damage of tax reform.”

— Posted by JVS on 1.24.18, backdated to 1.22.18

12.31.17 – Felder comments on New York state response to Congressional tax bill

In a Dec. 31 story, Hamodia reported that State Sen. Felder spoke at a public “Hamodia Events” meeting that covered “the new tax bill passed by the Republicans and signed by President Trump shortly before the end of 2017; as well as the bitcoin and cryptocurrency craze sweeping the world. ”

From the story:

Following a brief overview of the history of the U.S. tax code, Mr. Roth handed the microphone over to Mr. Shulem Rosenbaum, senior manager at Roth & Co., who spoke for close to 20 minutes on the intricacies of how the new tax law would affect taxpayers beginning in 2018. At one point, he acknowledged State Senator Simcha Felder, who was in attendance, for his efforts in the State Senate on a bill that would issue tax credits to New Yorkers who would suffer a loss due to the elimination of the state and local taxes (SALT) deduction. (Mr. Felder later took the microphone briefly to stress his conviction that these efforts won’t be for naught and some corrective measure will be coming out of Albany soon.) He also noted the contribution of U.S. Senators Marco Rubio, Mike Lee and Tim Scott to the final tax bill which doubled the child tax credit from $1,000 to $2,000 and made $1,400 of that refundable to low-income families.

Read the full story at Hamodia here.

— Posted on 1.1.18 by JVS, backdated to 12.31.17

11.24.17 – Felder says proposed legislation addresses lost federal tax deductions

State Sen. Felder has authored legislation he says will let New Yorkers get back money they could lose because of Congress’s tax bill. As reported on 11.24.17 in The New York Daily News:

ALBANY — A Brooklyn lawmaker is pushing to have the state compensate taxpayers for any losses they suffer if Congress does away with the federal deduction for local taxes.

State Sen. Simcha Felder, a Democrat who sits with the Senate Republican conference, introduced a bill this week to create a state tax credit that would be equal to whatever federal tax increase a resident suffers if the deduction for state and local taxes is eliminated.

“This bill will protect every hardworking New Yorker from the uncertainty and potential negative consequences of Washington’s tax overhaul,” Felder wrote in a memo submitted with the legislation.

Read the rest of the story here.

— Posted on 12.23.17 by JVS, backdated to 11.24.17