Governor Andrew Cuomo announced today that New York and other states whose high income residents will be impacted by the cap on state tax deductions in the new tax bill will sue to repeal the law.
Andrew Cuomo wants to pass the buck back to the residents in low tax red states to subsidize the deep blue Progressive Utopia. Even the GOP concession of a $10,000 cap rather than eliminating the state tax deduction is not enough to keep the high tax rates of New York and other deep blue states concealed. I thought the idea two California legislators had earlier this week to impose a 7% surcharge on businesses was the dumbest idea that would be floated by a blue state. Boy was I wrong.
That's right folks, rumored 2020 Presidential hopeful Andrew Cuomo wants to eliminate tax breaks for the vast majority of the country and businesses to keep what he only thinks is a secret. New York has had low attraction scores and some of the biggest net migration losses for several years. HIgh taxes, regulation and cost of living has been driving money, business and people out of the state. And it is quite possible the new tax law will make it worse as the impact is felt largely by wealthier property owners.
Instead of looking internally and asking what needs to change about New York to reverse this trend, Governor Cuomo and his Progressive allies want to punish those who benefit from the tax cut because they live in lower tax states or have middle class income and lower property values. That's right. Governor Cuomo and his allies will actually punish their own residents whose taxes may not exceed the $10,000 deduction by making them return to their higher tax rate. To help the wealthy. If I were Bernie Sanders I would be very confused.
The new tax law in it's treatment of state tax deductions for those who itemize is actually a great way to level the playing field. Every single tax paying American (so about half of us) will have equal treatment applied to their state tax expense as it related to your federal filing. I fail to see how this is unjust as Governor Cuomo asserts.
Further, there is no agreement between the Federal and State governments about taxation. The Federal government's ability to levy taxes is explicit in the 16th Amendment. Nowhere does it say the states must consent. We also have states that have no income tax and states with a combination of high income tax and high property taxes. That is actually the beauty of federalism. New York can be New York and jack taxes even higher to provide free college tuition. Meanwhile, Georgia has evolved the Hope Scholarship to fully fund the highest performing students at the collegiate level and provide some support to others that meet a minimum standard for performance.
Georgia residents, who have voted to support college education with performance conditions should not be required to pay more of their total federal tax bill than someone who earns the same salary in New York. Implementing the $10,000 cap actually prevents the taxpayer in Georgia from subsidizing free college tuition in New York.
If I recall the last general election candidate that ran on a platform of raising taxes across the board was Walter Mondale. Obama talked about taxing the affluent. What Cuomo and his fellow plaintiffs are discussing is worse than Mondale and the opposite of Obama.To limit tax implications for the wealthy they are suing to raise taxes on the general electorate, the vast majority of whom have seen an increase in take home pay this month. It's almost as if Andrew Cuomo is the self appointed Robin Hood in the most backwards version of the story ever. Please let him run in 2020.