April 12, 2020- Albany, NY- Governor Andrew Cuomo holds daily Coronavirus press briefing in the Red Room. (Darren McGee- Office of Governor Andrew M. Cuomo)

ALBANY – Governor Andrew Cuomo on Sunday said he will issue a new COVID-19 Executive Order that requires employers to provide essential workers with cloth or surgical masks – free of charge – to wear when directly interacting with the public.

New Jersey Gov. Phil Murphy recently issued a similar order.

The governor also announced he will issue an Executive Order to expand eligibility of individuals to conduct antibody tests to help ensure as many New Yorkers as possible have access to antibody testing.

Cuomo also joined National Governors Association Chair, Maryland Governor Larry Hogan in a bipartisan effort calling for $500 billion in aid to states in the next round of COVID-19 federal funding. The federal CARES Act approved last month contained zero funding to offset drastic state revenue shortfalls.

The Governor also reiterated his call for the Federal government once again allow resident to claim State And Local Tax (SALT) deductions on their federal tax filings.  The SALT provision in the 2017 federal tax reform measures eliminated all but $10,000 of the federal deduction for state and local taxes, known commonly as the SALT deduction, costing New Yorkers millions of dollars annually in federal taxes.

Taxpayers who itemize will only be eligible for a federal deduction that’s a small fraction of their charitable donations for property tax payments, according to proposed regulations issued by the Treasury Department on Thursday.

The charitable contribution strategies in high-tax states were created so taxpayers would be able to write off the full donation amount from their federal taxes.

NY Gov. Andrew Cuomo said the IRS was imposing politically motivated regulations to further the agenda of the Trump administration and block reforms from New York and other Democratic leaning states.

Cuomo said he and other states will consider litigation in an effort to fight the new regulations.

Below is Cuomo’s full statement on the issue:

“The federal government passed a partisan tax bill that took aim at New York, effectively raising our taxes and making us less competitive. The elimination of full state and local tax deductibility will cost New York families $14.3 billion each year, and we are already seeing evidence of its devastating toll on homeowners – home sales in Westchester for example fell by 18 percent in the second quarter, the most since 2011.

“Whether it be extreme weather or political attacks from the Trump administration — my number one job is to protect the people of New York. That’s why we were the first state to take action to protect our taxpayers against this federal tax assault and ensure New York families weren’t being used as a piggy bank to pay for tax cuts for big corporations.

“In a confounding and inexcusable act of betrayal, some New York Republicans voted for this anti-New York legislation, and every Republican in the New York delegation failed to stop their leadership from passing it. Representative John Faso went a step further by asking the IRS to effectively sabotage New York’s efforts to protect our taxpayers.

“Now the IRS is hastily proposing politically motivated regulations to further the agenda of the Trump administration and block reforms that deliver relief to New York taxpayers. In New York, we will not stand for this abuse of government power. We are confident that the recently enacted opportunities for charitable contributions to New York State and local governments are consistent with federal law and follow well-established precedent. And make no mistake: we will use every tool at our disposal, including litigation, to fight back.”

New York State is one of several states that have moved to let residents circumvent the new $10,000 federal cap on state and local tax (SALT) deductions. But the IRS issued a notice on Wednesday that challenges the states’ efforts.

The cap on SALT deductions would mean that property owners across the country could only write-off the first $10,000 they pay state and local taxes.  The cap would have little impact on the vast majority of residents in Chautauqua County, although it would have a significant impact on those taxpayers on the other  side of the state, who could decide to move to another state with lower taxes as a way to reduce their SALT contribution.

New York was first out of the gate, approving a measure in this year’s state budget that give wealthy taxpayers the option of making charitable contributions to not-for-profit, state-run funds financing education and healthcare. Taxpayers could get a state tax credit worth 85 percent of their contribution. And they could deduct 100 percent of their contribution on their federal return, since there is no cap on charitable deductions.

But the Treasury and IRS may rule against that strategy in proposed regulations that the agencies said they will issue “in the near future.”

NY Governor Andrew Cuomo

Governor Andrew Cuomo, who has described the SALT deduction cap as an “economic missile” launched by Republicans on Democratic states, made clear Wednesday afternoon the state won’t just roll over.

“The federal government passed a disastrous tax bill that put corporations over people and specifically targeted New York and other Democratic states with the elimination of full state and local tax deductibility,” Cuomo said in a released statement. “New York was the first to take action to protect our residents from this hostile assault and ensure New York families weren’t being used as a piggy bank to pay for tax cuts for big corporations.

“Now, the administration appears poised to attack again through new tax regulations, showing its true hostility to New Yorkers and middle-class taxpayers. It is particularly ironic that Donald Trump is in Long Island today while the IRS aims its sights on Long Island homeowners.

“Make no mistake: We have been and will continue to fight against this economic missile with every fiber of our being. The IRS should not be used as a political weapon, and I urge this administration to stop its partisan assault on New Yorkers and instead work with us to deliver real, lasting relief for hardworking families.”