Thursday, October 26, 2017

NEW YORK | GOP Passes "Decimating" Budget

October 26, 2017 – This morning, the House of Representatives passed a budget that the bi-partisan Committee for a Responsible Federal Budget describes as using "gimmicks", increasing debt and exercising "Zero Fiscal Restraint".
For New York State residents, the bill is especially threatening because it eliminates the deductibility of State and Local Taxes (SALT) from taxable incomes.
When this idea was introduced under President Reagan, it was described as "double taxation". The CEO of American Express predicted that the value of the company's new building would drop by 25 percent, from $1 billion to $750 million. The proposal was defeated.

Under President Trump, the idea was resurrected and has passed both the Senate and the House.
On Long Island, two Republican Congressman opted to vote against the bill:

  • One of them, Rep. Peter King, said: "Why should I vote for something that would end up decimating my district?" 
  • The other, Lee Zeldin, represents most of Suffolk County. 
The bill has passed by a few votes and now goes back to a House-Senate conference for reconciliation.

New York voters are watching carefully. If King and Zeldin think that they will be forgiven for this "decimating" GOP budget because they voted against it, they may be in for a surprise.