This tax-bill fine print could send businesses fleeing from New York — or derail Trump's agenda
Share this @internewscast.com

A recently discovered detail could potentially disrupt negotiations over President Donald Trump’s significant legislative proposal, as it poses a serious risk to certain businesses in New York and other states with high taxes.

The controversy centers around a measure that would negate state regulations allowing various partnerships to benefit from the 2017 tax reform, which capped the State and Local Tax deduction for personal income taxes at $10,000.

Many business pay taxes under the personal code, not the corporate one.

And where the 2017 reforms gave almost every individual filer a net tax cut, it hit some partnerships harder.

Consequently, approximately 40 states implemented complex regulations to protect these businesses from severe consequences; New York’s version is known as the Pass-Through Entity Tax, or PTET.

But if Congress kills the PTET, it’ll mean these NY biz would collectively have to pay $5 billion to $6 billion more in federal taxes, calculates the Empire Center’s E.J. McMahon.

And partnerships in New York City might be especially hard-hit, if the new federal rule also removes the deduction for the city’s 4% unincorporated business tax.

The net effect would be to boost the company’s tax bill by something like 50% — a hit that will send those that can leave fleeing to Florida, Tennessee or other low-tax states.

And that includes many of the most profitable firms, and thus the ones that most bolster the local economy

Ironically, this move may have been how the tax-writing wonks sought to replace the federal revenue lost by increasing the SALT limit from $10,000 to $30,000 to help out individual filers in high-tax states — but that doesn’t do much for the business filers (nor would even a $60,000 “cap”).

Of course, the root problem here is the insane tax rates imposed by Albany, Trenton, Sacramento and so on.

But until those state governments see the light, it’s the individual and business taxpayers who suffer.

The partnerships that would get slammed are only now waking up to the peril, and giving their representatives in Congress an earful.

So stay tuned for yet more high-stakes drama as Republicans work to enact the Trump agenda.

Share this @internewscast.com
You May Also Like
Kennedy Expressway construction: Chicago traffic expected to be impacted by new I-90/94 lane, ramp closures July 7 and 8: IDOT

Kennedy Expressway Roadwork: Chicago Traffic Faces Disruptions from I-90/94 Lane and Ramp Closures on July 7 and 8, Says IDOT

CHICAGO (WLS) — There will be new shifting traffic patterns on the…
DOJ indicts suspect who went viral for delivering protective gear to anti-ICE protesters on live TV

DOJ Charges Viral Figure for Supplying Protective Gear to Protesters Opposing ICE on Live TV

A man who gained viral attention after being seen on live television…
Bryan Kohberger at a pre-trial hearing.

Bryan Kohberger Anticipated to Enter Guilty Plea in Idaho Student Murders to Avoid Death Penalty

BRYAN Kohberger is prepared to enter a guilty plea for the murders…
Tennessee felon Katlyn Wray, leads cops on 4-hour long slow motion chase with speeds of 7 mph in stolen car

Tennessee Convict Katlyn Wray Engages Police in a 4-Hour, 7 mph Pursuit in a Stolen Vehicle

In the early hours of Tuesday morning, a police pursuit unfolded at…
Rep. Angie Nixon on new ICE facility at Camp Blanding

Congresswoman Angie Nixon Discusses New ICE Facility at Camp Blanding

Gov. Ron DeSantis announces that construction of a new ICE detention facility…
House GOP urges quick vote on Trump's tax cuts

Republican Leaders in the House Push for Swift Vote on Trump’s Tax Reduction Plan

Some Republicans are likely to hesitate at approving the Senate bill within…
Kate Middleton admits she's 'not able to function normally' after cancer treatment

Kate Middleton Reveals Struggles with Functioning Normally Post-Cancer Treatment

Kate Middleton made an emotional admission about her life post-cancer treatment. While…
Belgium's Prince Emmanuel revealed to have secret career as DJ Vyntrix

Belgium’s Prince Emmanuel Unveiled as the Secretive DJ Vyntrix

The Fresh Prince of Bel-gium! Belgium’s Prince Emmanuel has quietly launched a…
Two hikers on the summit of Mount Whitney holding a sign.

14-Year-Old Overcomes Altitude-Induced Hallucinations During Descent from America’s Tallest Mountain as Father Observes

THE father of a teen who fell off a 120-foot cliff gave…
Elizabeth Hurley wears leopard print swimsuit, shares intimate details about Billy Ray Cyrus relationship

Elizabeth Hurley Sports Leopard Print Swimsuit and Discusses Her Connection with Billy Ray Cyrus

Elizabeth Hurley is officially in summer mode.  On July 1, the “Austin Powers”…
Fruit salad with blueberries, kiwi, banana, and strawberries.

The FDA Issues Urgent Recall on Tainted Fruit Due to Severe Health Risks, Including Miscarriage and Death

HUNDREDS of boxes of a popular fruit are being recalled after it’s…
Drive-by shooting in Chicago leaves 4 dead, 14 injured

Chicago Drive-By Shooting Results in 4 Fatalities and 14 Injuries

The shooting happened at a restaurant that had just hosted the release…