I’M OLD ENOUGH TO REMEMBER WHEN PAYING YOUR FAIR SHARE WAS PATRIOTIC: New York Towns Gearing Up to Fight IRS Ruling on Local Taxes. “New federal code capped state and local tax deductions at $10,000, hurting some residents in the high-tax suburbs.”
State lawmakers approved a bill in March that allowed the creation of the charitable funds. Under New York’s law—which is similar to legislation adopted in New Jersey and Connecticut—localities can issue a taxpayer a credit against their property taxes for up to 95% of the amount donated to a designated charitable fund. New York may issue credits against state income tax for up to 85% of a donation.
Fourteen New York municipalities have set up the charitable funds, according to a database of local laws and interviews with municipal officials. Charitable deductions against federal income aren’t limited, but the IRS rule would block the relief intended by New York lawmakers by requiring taxpayers to subtract the value of the state credits from the amount of their donation.
Why should voters in low-tax states continue subsidizing their tax-and-spend lifestyles?
h/t SG