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Andrew Cuomo: New York exploring ways to circumvent GOP tax overhaul

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New York Gov. Andrew Cuomo delivers his state of the state address at the Empire State Plaza Convention Center on Wednesday, Jan. 3, 2018, in Albany, N.Y. (AP Photo/Hans Pennink)

New York Gov. Andrew Cuomo said Wednesday that the state government would explore a "major" overhaul of its tax system to circumvent the cap on state and local tax deductions imposed by Republicans at the federal level.

"We must protect New York taxpayers from this assault," said Cuomo at his state of the state address. Cuomo has proven to be the most vocal critic of the new $10,000 limit on the deductibility of state and local taxes.

In a document outlining his plans, Cuomo said the state "will explore the feasibility of a major shift in tax policy," and said officials are developing a plan to "restructure the current income and payroll tax system."

The plan didn't include further details, but one possibility would be an idea put forward by progressive economist Dean Baker, a scholar at the Center for Economic and Policy Research. Baker proposed that state governments replace income taxes with employer-side payroll taxes, shielding more income from federal taxation.

Cuomo also proposed creating new charitable programs to fund public services, another workaround to the state and local tax deduction cap that tax experts have floated.

Cuomo has pledged to challenge the new tax law as unconstitutional and to mount a campaign to repeal it.