According to the NY Times and AP, the Bush tax plan is (predictably) going to screw New York State hard.
NEW YORK (AP) -- State officials worry that New York could lose as much as $37 billion annually in federal tax deductions as the Bush administration attempts a change in the tax code in which the federal deduction for state and local taxes is eliminated
About 3.2 million households in the state, most of which are middle and lower income, would be affected, according to tax records. New York has a 7.7 percent maximum state income tax rate, the second highest in the country behind California's 9.3 percent and state residents use the takes to take large deductions from their federal taxes.
Roughly 38 percent of households in the state file for deductions of federal and state taxes.
"This change would be one of the worst things for New York to come out of Washington in a long time," Sen. Charles Schumer told the New York Times in Monday editions. "But if they take this route, they can expect a serious fight."
Ronnie Lowenstein, director of the New York City Independent Budget Office said city residents would be particularly affected by a change in the tax code change because they would see an 11 percent increase in the amount they must give to the Internal Revenue Service.
White House officials said any discussion of the plan is currently premature.
"The president has yet to appoint the panel that will review the tax code and make recommendations on how it can be made simpler, fairer and more pro-growth," said Claire Buchan, a White House spokeswoman.
But Schumer said every conversation he has heard in the Bush administration points toward their plans to remove or augment state and local taxes.
"This is definitely something they are already thinking about."
You can read the thicker NY Times article here.