The U.S. House passed the Republican tax reform bill on Thursday. Reaction was swift from all corners of the state. (For pre-vote reaction, click here)
From state Comptroller Tom DiNapoli:
The House and Senate Republican tax plans are both profoundly bad deals for New York. Cutting or eliminating state and local tax deductions will hurt many New York taxpayers. Both plans would also revise the rules for municipal bonds in ways that could drive up state and local costs for essential infrastructure investments.
These tax schemes are coupled with broader budget proposals that cut billions of dollars in funding for health care and other essential services. At the end of the day, the approach taken by both the House and Senate will hurt the very people Washington claims to be helping.
From U.S. Rep. Paul Tonko, D-Amsterdam:
Congressional Republicans took another step forward today in their plan to raise taxes on millions of middle class families, rip away their healthcare and explode the deficit, and give massive tax handouts to some of the wealthiest individuals and corporations in the world. Their vote today betrays millions of working families in New York and all across the country.
Fifty percent of the benefits of this bill go directly to the wealthiest one percent. 36 million Americans will face higher taxes under this plan, many of them in my home state of New York. This bill hurts teachers, students, veterans, people with cancer and Alzheimer’s and anyone with a job that can be moved overseas. Republican leaders knew they would need to rush that kind of bad news through the House before the American people could find out what they were up to. That’s exactly what they did with today’s vote.
I want to be clear: this fight is not over. The phones in my Washington office starting ringing off the hook today, just as they did each time Republicans tried to gut the American healthcare system earlier this year. Phone lines, social media pages and mailboxes are being flooded with comments from people demanding that Congress stop doing the bidding of the biggest donors and corporate lobbyists and get back to doing the peoples’ work. Those calls, emails, letters and social media posts need to continue.
From U.S. Rep. Claudia Tenney, R-Oneida County:
Our current tax code is broken. It’s riddled with loopholes and kickbacks that penalize success and hurt hardworking taxpayers. This is why tax reform is a priority for me and this is why I voted to move the debate forward, despite concerns I continue to have regarding the deductibility of state and local taxes (SALT).
I advocated so strongly for the SALT deduction because it shields New Yorkers from the oppressive burden Albany places on our taxpayers. Albany politicians have zero respect for the taxpayers. Governor Cuomo and liberals in the Assembly continue to increase our bloated budget while hiking taxes on hardworking New Yorkers. Their harmful habits will never change.
The eight counties I represent have among the highest property tax rates as a percentage of home value in the nation because Albany’s crushing unfunded mandates continue to drive up the cost of living in our state. I have always put the taxpayers I represent first and it is long past time for politicians in Albany to do the same. Now it’s time for Governor Cuomo and the State Legislature to lower the state taxes so the federal tax cut has an even larger tangible impact for New Yorkers.
I will continue to make state and local tax deductibility a top priority as this bill heads to conference between the House and Senate.
H.R. 1 begins to tackle our costly, complex, and unfair tax code by doubling the standard deduction for individuals and families, which will dramatically increase the simplicity of our tax code. In addition, the bill reduces the number of brackets and lowers tax rates in each, except for the rate on the highest income earners, which remains unchanged. All Americans deserve to keep more of what they earn and this bill will put more money in back in the paychecks of hardworking New Yorkers.
By doubling the standard deduction, simplifying the bracket structure, and lowering rates, low- to middle-income individuals and families will benefit from a tax structure that is easier to understand and more generous.
A married family of four in the 22nd District with a median household income of $85,692 could expect a tax cut of almost $1,900 while a single filer with a median income of $52,967 could see a tax cut of almost $1,700.
H.R. 1 is a step in the right direction. While this bill is not perfect in its current form and there are changes I will continue to advocate for, especially on the SALT front, I strongly believe that passing the Tax Cuts and Job Act is a critical step to move this important process forward and ensure our tax codes reflects the values of fairness and hard work.
From U.S. Rep. Lee Zeldin, R-Long Island:
My goal in this tax reform mission has always been to ensure that the hardworking men and women of Long Island keep more of their paycheck, reduce their cost of living, and be able to save more for retirement. While I like many aspects of this tax reform plan, too many of my constituents would not see tax relief under this plan as it is currently drafted. Adding back in the property tax deduction up to $10,000 was progress, but not enough progress. This fight is not over. I look forward to continuing negotiations to improve this proposal for my constituents. If I’m not fighting for my home state and my home district, I cannot expect another Member of Congress from some other state to do that for me.
From U.S. Rep. Peter King, R-Long Island:
I voted NO on the tax bill today to protect Long Island and NY. While the bill passed, I will continue the fight.
— Rep. Pete King (@RepPeteKing) November 16, 2017
From state AFL-CIO President Mario Cilento:
Our Representatives in Washington DC had a choice to make; stand up for low and middle-income taxpayers of New York State or buckle under pressure from big corporations and side with their wealthy donors. Sadly, several of our Representatives turned their backs on working people by voting for the House tax plan that in reality is a tax scam.
Representatives Tom Reed, Chris Collins, Claudia Tenney, and John Katko all showed a blatant disregard for the needs and concerns of all working men and women. They chose to cut taxes for the wealthiest 1 percent of New Yorkers, while eliminating tax breaks for the rest of us causing harm to the very people who entrusted them to do what is right. Their vote punishes working people by eliminating the deduction for state and local income and sales taxes, deductions for student loan interest, tuition expenses, and even deductions educators rely on for out-of-pocket school supplies. To add insult to injury, the plan would be paid for, in part, by drastically cutting Medicaid, Medicare and education. Their betrayal will not be forgotten.
We commend Representatives Dan Donovan, Peter King, Lee Zeldin, John Faso, and Elise Stefanik, as well as the entire Democratic New York Delegation for voting “no” on the plan.
This fight is not over. We will continue to work over the coming weeks to stop tax giveaways to those who need them the least at the expense of hardworking New Yorkers.
Statements from the Democratic Congressional Campaign Committee’s Evan Lukaske tailored for Rep. John Faso’s 19th Congressional District and Rep. Elise Stefanik’s 21st Congressional District (spoiler, they’re both the same thing):
There’s a wrecking ball coming straight for the middle class in New York’s 19th Congressional District, thanks to Speaker Ryan and Washington Republicans’ Tax Scam. This is a Republican Tax Scam and the victims are the millions of middle class families who will see their taxes go up while corporations and the wealthy laugh all the way to the bank. Rep. Faso’s constituents will hold him accountable for this middle class tax hike next November.
There’s a wrecking ball coming straight for the middle class in New York’s 21st Congressional District, thanks to Speaker Ryan and Washington Republicans’ Tax Scam. This is a Republican Tax Scam and the victims are the millions of middle class families who will see their taxes go up while corporations and the wealthy laugh all the way to the bank. Rep. Stefanik’s constituents will hold her accountable for this middle class tax hike next November.
From Brian Flynn, Democratic 19th Congressional District candidate:
Republicans in Congress will stop at nothing to inflict more economic hardship on the hard working families of the country while many in the 19th District continue to struggle with stagnant wages and increased cost of living. This vote was heartless and undemocratic.
Critical pieces of legislation, like this tax bill, cannot be thrown into the political hopper. Hard working Americans who are still struggling to get by don’t benefit from the show or the policy. Nobody’s a bigger friend to the wealthy and big corporations than Congressman John Faso. In his latest attempt to ‘move center’, Faso was given the green light to vote no only when he knew his party had the votes on this bill.
Where was Faso this whole time? Sitting in the shadows. He did nothing to stand up and fight to lessen the burden on our residents. What’s the plan? Will he stand up and protect social security and medicare? NY-19 voters will remember his lack of leadership on this bill. His silence until the very end demonstrates, again, that he is not the right representative for our district. Voters will remember this next November.
From Antonio Delgado, Democratic 19th Congressional District candidate:
Today’s vote has shown yet again that Republicans in Congress only care about the needs of corporations and the wealthiest Americans. We need real tax reform—the kind that puts working and middle class families first. Instead, the GOP voted to raise taxes on hardworking families in order to cut taxes for the top 1%.
From Pat Ryan, Democratic 19th Congressional District candidate:
The GOP continues to deliver blow after blow to middle class families in our district. This has to stop. As the son of a small business owner and a Kingston public school teacher, I understand how detrimental this plan will be for families in our community. We need a true advocate for the middle class who will work across party lines to deliver tax reform that relieves the burden on working families and small businesses. The GOP bill does the opposite by hiking taxes for the middle class and adding $1.5 trillion to the national debt, while lining the pockets of the ultra-wealthy.
Faso again failed to defend his district against his own party’s disastrous plan. He’s had every chance to fight against countless GOP policies that hurt his district, but has chosen party over people every time.
From Gareth Rhodes, Democratic 19th Congressional District candidate:
Today’s vote shows how out of touch Paul Ryan and members of Congress are with the lives of hard working Americans. This vote was taken to appease wealthy donors and corporations who stand to make a windfall off of this bill—paid for by middle class taxpayers. Never has it been more clear the need for a new generation of leaders to go to Congress and stand up for what is right and fair.
While Faso voted no, his weeks of indecision and failure to make any public protest about the devastating impacts of this bill on New Yorkers helped pave the way for its passage and we will hold him accountable in November 2018.
From Don Boyajian, Democratic 21st Congressional District candidate:
This Republican tax plan is an absolute disaster for our district. People in the North Country deserve better than what they are getting from Washington. While Congresswoman Stefanik voted against it, she didn’t take on her leadership and fight to stop it. It’s not enough for Stefanik to accept the pass given to her by Speaker Paul Ryan to vote the way her district wants her to on this one bill. We deserve a leader who is going to fight for us, not someone who goes along to get along.
From Katie Wilson, Democratic 21st Congressional District candidate:
The bill passed today by the House of Representatives is nothing short of a direct assault on the American middle class, and the impacts of this ill-conceived legislation will be devastating for hardworking families around the country, and especially those right here in the North Country.
By eliminating state and local tax deductions almost entirely, the House is leaving residents of higher-taxed states like New York to face dramatically higher tax bills each year, in exchange for a new tax code that overwhelmingly favors the richest Americans while offering little to no relief for those who need it most. One after another, governmental and independent analyses of the House tax plan have found it would disproportionately reward the highest earners with tax breaks, while making it increasingly difficult for hardworking New Yorkers to make ends meet.
The House bill eliminates tax deductions for medical expenses, punishing sick Americans for expenses they incur simply fighting to stay healthy. The bill eliminates deductions for college loan interest, discouraging our future generations of workers from pursuing higher education and burdening young professionals looking to purchase homes and start families. In New York, the elimination of state and local tax deductions would raise 3.3 million New Yorkers’ federal tax burden by $17.5 billion. Here in the North Country, the elimination of the SALT deduction – the single most-claimed deduction in the entire tax code – more than 26,000 tax filers would be directly impacted, with an average increased tax burden of $2,540.
This is exactly the kind of lawmaking that has made Americans so acutely aware of the disconnect between the issues they live and breathe every day, and the Washington insiders who legislate solely to benefit their moneyed special interests. We need real reform that rewards hard work and gives tax relief to those who most desperately need it. This bill instead favors corporations over people and promises to leave the middle-class in its ongoing struggle to reach economic security and stability.
From Anthony Brindisi, Democratic 22nd Congressional District candidate:
Let the record show that when it really counts, when we need our hometown member of Congress to do the right thing, Claudia Tenney does the exact opposite. She votes how she is told, not in what we believe. For weeks, I have crisscrossed this district—talked with the young, the old, homeowners, business owners, teachers—and they all saw this plan by Congress for what it is: a tax increase on our middle-class and a tax cut for the ultra-rich. Congresswoman Tenney has just made one of the biggest mistakes of her career and ignored the business, elected leaders, and the people of her very own hometown. She just signed a contract against all of us that will deliver a tax increase to our area, decimate Medicare and skyrocket the national debt. She owns this mess.
From Syracuse Mayor, and potential Democratic 2018 gubernatorial candidate, Stephanie Miner:
Today’s vote by the House demonstrates that Republican leadership has put vested, moneyed interests ahead of people in cities like Syracuse. This legislation is riddled with bad public policy that leaves working families behind, including eliminating the state and local tax deduction; eliminating the deduction for teachers who purchase school supplies; eliminating the historic tax credits which have led to the redevelopment of many downtown Syracuse buildings; and eliminates deduction for interest rates on student loans, vital to the economy of cities like Syracuse where our major economic drivers are educational institutions.
I am especially disappointed in the members of the New York delegation who put their party before their state today, including Reps. Katko, Tenney, Reed, and Collins. Washington Republicans have made a serious mistake today putting billionaires before the people of their districts and voters will remember this next November.
From New York City Mayor Bill de Blasio:
President Trump and his cronies may think they can pull the wool over our eyes, but New Yorkers won’t fall for his tax scam. That’s why Representative Donovan and many other republican representatives from around the state sided with people over party. This plan fills the pockets of the already wealthy, threatens our seniors and steals from working families. New Yorkers won’t stand for that. This fight is far from over. It will take a lot of organizing to stop this scam, but it’s important to remember the repeal of the Affordable Care Act was a foregone conclusion when President Trump was elected. Just this week, a record number of Americans signed up to get affordable health care.
From a coalition of New York affordable housing advocates:
We are deeply disappointed in the four members of the House’s New York delegation who voted for a tax bill that, if signed into law, would make our statewide housing and homelessness crisis even worse. The future of affordable housing production throughout New York State is now in jeopardy.
The bill passed today by the House would eliminate private activity multifamily Housing Bonds, which play a crucial role in financing the production of affordable housing. As we made clear to every member of the New York delegation, the elimination of these Housing Bonds would result in an annual statewide loss of approximately $4.5 billion in affordable housing financing, preventing the production of approximately 17,000 affordable homes and 28,000 jobs across our state each year. Taking this action is especially unconscionable at a time when rents are still rising, homelessness is increasing and public housing infrastructure continues to deteriorate.
It is not too late for Congress to preserve housing efforts in New York and across the nation. The Senate has proposed a tax bill that would not eliminate Housing Bonds, and that must remain true in any future bill drafts. Everyone in Congress must remember that their constituents are relying on them to protect and expand access to desperately needed affordable housing.
From Kathryn Wylde, president and CEO of the Partnership for New York City:
New York is a global business hub that will benefit from the business tax reductions included in the bill passed today by the House of Representatives. But the bill will increase the burden on individual taxpayers in New York by as much as 40% as a result of the virtual elimination of the ability to deduct state and local taxes from our federal tax obligations. New York City taxpayers contribute $56.1 billion more to the federal government than the city receives back in federal funding. As this bill moves in the Senate and in conference, we trust there will be reconsideration of the provision that penalizes New Yorkers and residents of other high tax states.
The Capitol Confidential team: