NY Rep Asks Treasury Department For Opinion On State Tax Plan
Republican New York Congressman John Faso has written to the U.S. Treasury Department. He’s asking for guidance concerning proposed tax changes in Democratic Governor Andrew Cuomo’s proposed budget. Cuomo’s proposed changes come after federal tax law capped state and local income tax deductions.
Faso’s inquiry surrounds the governor’s proposal to allow taxpayers to make charitable contributions to new state-related entities for health and education-related costs. The 19th District congressman says he has been fielding many questions from constituents about whether the state initiative will comply with federal law for charitable deductions. Faso writes that he believes it is important that the Treasury and IRS issue guidance or a formal opinion letter as to whether taxpayer contributions to state authorized trust funds, partially reimbursed by credits reducing state and local income taxes, will be considered deductible for federal tax purposes.