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Faso releases statement on tax plan

Nov 02, 2017 2:15 pm
Barnini Chakraborty reports for Fox News that the Republican tax plan was announced Nov. 2, and it "trims deductions for state and local taxes." The plan limits the deductibility of local property taxes to $10,000 and eliminates the deduction for state income taxes. Some New York House Republicans, such as Lee Zeldin, immediately denounced the plan for raising taxes on New Yorkers. Rep. John Faso (R-Kinderhook) released a long statement Nov. 2 that seemed to support the tax plan, saying it does not give large tax breaks to the rich at the expense of the middle class. But he also said, "I continue to be concerned regarding the impact on New York state due to the elimination of state tax deductibility." Faso voted against the tax plan framework last week, though Democrats in the U.S. House noted he waited until the measure had enough votes to pass before casting his no vote. Read the story at Fox News and Faso's full statement on the WGXC Newsroom.

Rep. John Faso's full statement on the Republican tax plan:

Every worker, family, and small business owner knows our tax code does not work, is too complicated, and forces them to send more of their money to Albany and Washington, D.C. than they should. My goal for tax reform is to get our economy moving again, increase worker paychecks, incentivize small business investment and ensure New York families are better off. The plan released today begins that process by lowering the tax rates and expanding the tax brackets, doubling the standard deduction to $24,000 for married couples, maintaining the ability to deduction charity donations, mortgage interest and a portion of your property taxes. I remain concerned about the elimination of the deduction for state income taxes and will continue to advocate for such a policy and ensure this plan works for New York middle class families.

In the 19th Congressional District, approximately 32% of tax filers itemize deductions, typically for mortgage interest, charitable donations and state and local taxes. With the doubling of the standard deduction for married couples to $24,000, I expect a reduction in the number of taxpayers who chose to itemize deductions if this plan was adopted. In addition, the plan raises the Child Tax Credit from $1000 per child to $1600 per child while also providing a $300 credit for each parent and non-child dependent. These changes will save families money.

I also recognize that there will be attacks that this plan is only to help the “rich” and nothing can be further from the truth. The highest income earners will continue to face the highest taxes and the plan maintains the top tax bracket. Democrat critics need to revise their class warfare playbook as most benefits accrue to middle class taxpayers and small businesses.

Today’s plan also allows American businesses to compete in the global economy on a level playing field by reducing the corporate rate from 35% to 20% to bring the US into range of other industrialized nations that our workers are competing against. The plan would also help US corporations to bring profits home from overseas (repatriation) that will lead to more investment and jobs in the United States. Again, more corporate investment will mean more US jobs and higher paychecks.

Changes of this magnitude will of course be controversial and as I review the details of the legislation and work with my colleagues, I encourage everyone to learn how these changes could impact them and their family specifically and not rely on the rhetoric and attacks they will be hearing from all sides. I am committed to helping New York families and businesses throughout this process and as such I continue to be concerned regarding the impact on New York state due to the elimination of state tax deductibility. Albany’s high taxes already are forcing families and businesses to leave our state and I believe that we cannot accelerate this trend as a result of changes to the federal tax code – we all know two wrongs do not make a right. As I work to lower taxes for middle class families and small businesses at the federal level and allow New Yorkers to compete in the global economy, I would hope Governor Cuomo would look at ways to reform the state’s tax and spending and not just attack the work we are doing to lower taxes for middle class families.
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