Photo by: Office of Senator John E. Brooks In this year s budget, Senator John E. Brooks of Long Island has successfully included tax alleviation for small businesses in NY that have suffered from the double taxation associated with the cap placed on deductibility of state and local taxes (SALT) by the federal government. The SALT deduction allows for taxpayers to avoid double taxation from the federal government by granting taxpayers the ability to claim state and local taxes on their itemized deductions. However, in 2017 federal legislators placed a SALT cap of $10,000 for filers during the taxable years of 2018-2025 on state and local taxes, meaning that many New Yorkers are now paying taxes on their taxes. Thanks to intense effort by Senator Brooks, small businesses in NYS will now be able to avoid that debilitating tax burden.
Wednesday, February 24, 2021
Within a 24 hour period, the Mississippi House of Representatives introduced and passed a bill to repeal the individual income tax, but at a cost of massive increases in sales taxes imposed on business inputs. H.B. 1439 would phase out the individual income tax by gradually increasing the personal exemption over an undefined period of time based on a complex formula taking into account general fund revenue growth, but would leave the corporate income tax in place. If passed, any business income generated by pass-through entities such as partnerships and LLCs, as well as trusts and estates, would be exempt. The bill also would gradually reduce the sales tax on groceries from the current 7% to 3.5%, which may be the only favorable sales tax change in the bill.