GOP Tax Plan Could Wind Up Benefiting Opponents Schumer, Gillibrand
NEW YORK (CBSNewYork) – The fight over the new Republican tax law had some Democrats working hard to stop it.
But now, it appears some of those lawmakers stand to benefit from the changes.
As CBS2's Dick Brennan reported, in the fight against President Donald Trump's tax plan two voices were heard loud and clear against it: New York Sens. Chuck Schumer and Kirsten Gillibrand.
"It's a dagger to the heart of New York, it's a dagger to the heart of New Jersey," Schumer had said.
"I've never seen a more blatant attempted at a corporate welfare bill than this bill," said Gillibrand.
But as it turns out, both Schumer and Gillibrand are big beneficiaries of the bill.
They both were among the few who posted their 2017 tax filings on their websites, and both received salaries of $174,000 a year. With their spouses income, they wind up in a specific category.
"It's one of those anomalies. They're just in that particular sweet spot of the code where they are making between $200,000-600,000 a year with an unusual set of deductions," said John Lieberman, CPA with Perelson Weiner LLP. "For most people, they are not going to be in the same situation."
The Schumers should save in the area of $10,000 in a potential projected filing over the previous year, Brennan reported. In part, because of the changes to the alternative minimum tax.
"The floor has been raised. So where he had taxes, an effective additional tax -- or the alternative minimum tax -- now that floor or threshold has been raised, and therefore he will be able to to avail himself to his other deductions, not just limited to the state and local income tax," Lieberman said.
The Gillibrands could see a savings over the previous year in the area of $13,000 for two reasons, Brennan reported.
"One, she will get the child credit, which increases her benefit. The other part is that her husband is self-employed. So under the code, self-employed people making below a certain amount will be able to reduce their income by 20 percent," said Lieberman.
In a statement, Schumer's office said in part that the tax bill tipped the scales in favor of corporations and the wealthiest. He called it a raw deal that unfairly targeted New York.
In a statement, Gillibrand's office said in part, "She votes in the best interests of her constituents and not herself. The Trump tax bill was a bad deal for working New York families and she vigorously opposed it."