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A provision in Trump's spending bill could significantly increase taxes for New York's high-earning firms by curtailing pass-through entity taxes (PTET). This move, intended to offset proposed SALT deduction restorations, could exacerbate the ongoing exodus of businesses from New York. Experts predict a substantial tax increase for top earners, potentially acting as a tipping point for firms considering relocation. The bill's impact extends to smaller businesses, further straining New York's economy. The change could also eliminate deductions for New York City's unincorporated business tax.

Prepared by Christopher Adams and reviewed by editorial team.