Gov. Andrew Cuomo outlined his wish list for the state budget during yesterday’s State of the State address. During his speech, which touched on a wide range issues, Cuomo said little about financial services or issues directly related to credit unions.
He did, however, note his desire to implement “a plan to restructure the current income and payroll tax system” as a way of pushing back against the federal tax reform legislation that President Donald Trump signed into law late last year, which alters state and local tax deductions, known as SALT.
As noted in the Times Union: “Employers are at least partially responsible for paying a payroll tax, while employees pay income taxes, which are withheld from their earnings. Under the new tax bill, income taxes are not fully deductible, while payroll taxes are deductible.”
The details of the plan are expected to be unveiled in the governor’s state budget proposal, which will likely be released on Jan. 16.
New York Credit Union Association President/CEO William J. Mellin was joined by Association staff at the state Capitol yesterday, where the group monitored the governor’s speech. Association staff also attended events with Assembly Speaker Carl Heastie, Senate Majority Leader John Flanagan and Attorney General Eric Schneiderman.