(NY POST) WASHINGTON — President Trump will release a sweeping plan Wednesday to cut taxes and simplify the tax code that will eliminate the deduction for state and local taxes — a move that Gov. Andrew Cuomo has warned would be a “death blow” for New York.
Despite fierce opposition from high-tax states when the idea was first floated, the Trump administration is pushing ahead with the repeal, which would remove state and local income and property taxes as deductions on federal returns.
The perk — first enacted with the income tax in 1913 — is most heavily used in coastal, bluer states that include New York, California, New Jersey and Connecticut.
Repealing it would increase federal revenue by $1.3 trillion over the decade, according to the Tax Policy Center.
But it would also slam high-income New Yorkers.
Manhattan leads the way nationally in taking the deduction, with residents writing off an average of $24,898 on their federal returns.
Deductions would remain for mortgage interest and charitable contributions.
Also, the standard deduction would nearly double to $12,000 for individuals and $24,000 for married couples.
The administration and GOP tax committee leaders will release the plan Wednesday.
They’ve agreed on the framework for the tax overhaul, while committees will have some flexibility to fill in the details.
Tax brackets will be whittled down to just three: 12, 25 and 35 percent, with room to add a fourth higher rate if necessary to ensure the wealthy pay their fair share.
But the income levels for the brackets will be decided by the congressional committees.
The top tax rate now is 39.6 percent…
The death tax and alternative minimum tax would be repealed, along with most itemized deductions…