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Cuomo Passes The Buck

A coalition of blue states with high taxes wants to sue to repeal the new tax law.

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.

The federal government is not responsible for driving business away from your state. Why has the population decreased to some extent. You are protecting illegals who do not add to the economy of New York. You are specializing in over regulation. Your only sieving grace is the infrastructure that is difficult to move. Your concrete jungle congressman don't even understand upstate NY, let alone fly-over country. The income in the west is tied to the federal budget sine much of the land is owned by the federal government.

Cuomo wants high federal taxes on the rich that are then returned to high welfare states, like NY, CA, CT, MN by the fed gov. He's pissed because now he has to tax the rich more to offset the reduced fed tax. He doesn't want to be blamed for raising taxes.

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The continuous mantra from the Left is "The RICH don't pay their Fair Share". TAX Cuts always benefit the Rich and the Middle Class gets thumb screws.

But, yes always a BUT, do the Progressives have the FACTS on their side or are they just making stuff up to fit within their IDEOLOGY?

The Tax Foundation looked at the Data from 2015 and found the following"

  1. top half of wage earners (50%) may 97.2% of Federal income tax
  1. bottom half pay ONLY 2.8%
  1. top 1% pay 39% of ALL Federal Taxes ($480,000) bottom 90% pay 29.4%
  1. the 1% paid an effective rate of 27.1%
  1. bottom paid an effective rate of 3.6%
  1. 141 MILLION Taxpayers paid $1.45 Trillion who earned $10.4 in gross income, an increase of 5.8% over 2014
  1. bracket creep - "When incomes rise faster than inflation, more income is pushed into higher brackets and thus becomes subject to higher tax rates."

History shows that decreasing the income tax rates has a number of very positive factors that BENEFIT all Americans both rich and poor. Look at the results of Presidents Coolidge, Kennedy, Reagan, Clinton, GH Bush and Trump Tax cuts: 1) increased Federal revenue 2) economic growth 3) prosperity for ALL.

The Trump Tax cuts have NOT yet been felt by wage-earners but those heavier paychecks are just around the corner. Corporate America has already taken action with 1) increased wages 2) bonuses 3) increased charitable giving 4) investment in the company 5) returning overseas profits back into the economy

FACTS have meaning and disregarding evidence does not make it go away.

"Fair and Balanced"??? You decide!

So the federal government is to blame for not allowing wealthy people to deduct all of their high state taxes, which is a percentage of that, not the high tax states that assessed it in the first place. That is some backwards logic there. As long as the rules are the same for every state they've got no leg to stand on. If it hurts you state more, tough nuggets. Lower you taxes and it won't matter anymore.

Point: the 16th amendment was ratified by the states. Therefore, the states gave explicit consent for a federal income tax. The progressive states, hoisted by their own petard, have no standing for a lawsuit.

They are in favor of "wealth redistribution" as long as it is the money from the rest of the country that is distributed into their coffers.

Reading the replies I see there is nothing arguing the position of the Federal government, only that these are "bad states" that "tax too much"... so they must be punished by raising their Federal taxes.

Conservatism is dead. This move by the Republicans would be an outrage if foisted on the states that are net-receivers of Federal tax money. Because it's done to states run by the opposition - states that are actually still net-contributors to the Federal budget, it's somehow OK to raise taxes by taxing tax money citizens pay to local and states governments. And the argument that "it's the same across the board" is too cute by half. This is using the Federal tax code to manipulate states to have a lower standard of living. So much for the American dream and so much for limiting the power of the Federal government. Conservatism is dead, long live the party.

This is an individual issue, not a state issue. If a person in TN who pays no state tax & a person in NY both make $100K, why should the resident of TN have a higher taxable income at the Federal level because the NY resident can deduct somewhere around $15K in state & property taxes? You punish the taxpayers in low tax states without a common maximum deduction.

There are high tax states & low tax states. What is your issue with a standard maximum deduction for all takpayers? All other deductions are standardized. Don’t like your high tax state? Move or vote different.

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