The leader of the state Senate on Thursday threw cold water on Gov. Cuomo’s proposal to impose a new payroll tax to offset changes to the federal tax code that places limits on state and local deductions.
“Just the notion of a payroll tax scares me… I don’t see an appetite for doing something like that,” Senate Republican Majority Leader John Flanagan said during a breakfast event at the New York Athletic Club sponsored by Crain’s NY.
Senate Majority Leader John FlanaganAPThe new tax law approved by President Trump and the GOP-led Congress puts a $10,000 limit on state and local tax deductions.
That would boost the federal tax liability on higher-income New Yorkers.
Cuomo has proposed getting around the limits by shifting state tax collections to a payroll tax, which would still be deductible on federal returns.
But Flanagan said the change is complicated and taxpayers may not be pleased at seeing a drop in their income or take-home pay because more money would be taken out to cover the payroll tax.
