Cuomo Paid Less Tax Under Federal Overhaul He Has Ripped

Datum : 16/04/2019 @ 01h27
Quelle : Dow Jones News

Cuomo Paid Less Tax Under Federal Overhaul He Has Ripped

By Jimmy Vielkind 

New York Gov. Andrew Cuomo paid less in federal income taxes as a result of the 2017 tax overhaul he has railed against, his 2018 returns show.

The Democratic governor reported adjusted gross income of $211,289 for last year, the returns show, from his $172,667 salary as governor and about $40,000 of investment dividends.

He donated $11,000 to charity and paid $39,138 in federal taxes, an effective federal tax rate of 18.5%, his office calculated. In 2017, Mr. Cuomo paid $41,765 of federal taxes on an adjusted gross income of $212,776, yielding a 19.6% effective tax rate.

Mr. Cuomo is preparing to rally members of Congress and other governors to change the law's $10,000 cap on the deductibility of state and local taxes. He has described the cap as a "missile" and "assault" on New York, saying it has prompted people in New York City and its high-cost suburbs to relocate to lower-tax states.

The 2017 tax law also lowered federal tax rates, narrowed the alternative minimum tax and increased the size of both the standard deduction and child tax credit. Because of these provisions, supporters of the law say many people will see their tax liability go down, even if they pay more than $10,000 in state and local taxes. The Institute on Taxation and Economic Policy, a nonpartisan think tank, estimated 76% of New Yorkers would pay lower taxes as a result of the bill.

The state budget division estimated that in 2019, 1.8 million New Yorkers would pay an additional $15 billion of federal taxes because of the SALT limit. Mr. Cuomo, in February, said real estate values also would drop in high-tax areas of the state.

"If my state taxes have to go up to make up for the shortfall, then you haven't helped me. And people in every other state got those benefits and they got none of the negative," Mr. Cuomo said.

Aides to Mr. Cuomo said the impact of the SALT limits would be more pronounced in his case if he had more exposure to property taxes. Mr. Cuomo shares expenses in the Westchester County home owned by his romantic companion Sandra Lee, the Food Network star, including nearly $38,000 in property taxes she paid in 2018. The governor was unable to deduct all of the $12,894 he paid in state income taxes.

Lt. Gov. Kathy Hochul and her husband, William J. Hochul, reported $876,252 of 2018 income and paid $245,622 in federal taxes. Returns show the couple paid $66,089 in state income taxes and $6,166 in property taxes on their Buffalo home. A spokesman for Ms. Hochul said the SALT cap cost the couple $23,136.

Republican State Committee Chairman Ed Cox laughed when told Mr. Cuomo's taxes went down.

"All those big-mouth statements made by the governor were just wrong: the only missile aimed at the state is his millionaires tax surcharge that he just extended for another five years," Mr. Cox said.

As part of the state budget enacted this month, a state surcharge on top earners was extended, but rates for middle-class taxpayers will continue to tick down.

Mr. Cuomo has made his tax returns available for inspection every year he has held statewide office.

Democratic State Sen. Brad Hoylman has introduced three bills that would force the disclosure of President Trump's tax returns. In an interview, Mr. Hoylman said a measure introduced last week that would require New York's Department of Taxation and Finance to respond to certain congressional subpoenas was gaining steam.

Mr. Trump broke with four decades of tradition in rebuffing calls to release his tax returns, saying they were the subject of an audit.

Write to Jimmy Vielkind at Jimmy.Vielkind@wsj.com

 

(END) Dow Jones Newswires

April 15, 2019 19:12 ET (23:12 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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