New York officials have railed against the proposal to end deductions for state and local taxes. But for local governments, ending those deductions could spell an even bigger problem.

"The fact that we're talking about this in 2017, it really raises alarm bells for our level of government," said NYSAC Executive Director Stephen Acquario.

The Republican-led House of Representatives voted to cap property taxes deductions at $10,000. The Senate version of the tax overhaul would do away with the deductions entirely. It's a problem for New York taxpayers, given so many services emanate from local governments.

"In other parts of the country, they're simply not funding state services with local taxes the way we do in New York," said Acquario.

One concern is that without deducting sales taxes, consumers in New York would pull back on spending.

"It's going to take money out of pockets of the middle class taxpayers," said Assemblyman John McDonald (D - Cohoes). "That is going to have an impact on local governments, because items people were able to buy before, they're not going to have that money to spend."

Even for those taxpayers who do not itemize or are paying less on their property taxes, state lawmakers say the entire state will be impacted, from every level of government. 

"When you're looking at less revenue for local governments, that means it's going to have an impact on services, it's going to have an impact on quality of life in your community, and inherently, it means people are going to be selling their houses and moving south," McDonald said.

And a further loss of population is something New York can't afford.

"For government to do what it wants to do, for what it needs to do, it's going to make it less affordable for people to be in New York," said Comptroller Tom DiNapoli.

In the last round of redistricting, New York lost two seats in Congress because its population grew slower than the rest of the country.