Sunday, January 28, 2018

New York Governor Andrew Cuomo Wants to Sue to Enjoin the Trump Tax Cuts

Governor Cuomo is enlisting New Jersey and Connecticut in his crusade to keep New York taxes high by suing the federal government to enjoin the Trump Tax Reform Act, which cuts taxes to the vast majority of Americans. They object to the 10% limit on state income and property tax deductions in itemized deductions. Of course, they want to sue. Liberals have resorted to litigation in recent decades when they lose politically. Trial lawyers are one of the core constituencies of the modern Democratic Party. Harry Reid and Barack Obama stacked the lower courts in the federal judiciary by eliminating the filibuster on judicial nominees to the federal district and appellate courts, The Democrats can usually find a liberal judge in blue states to enjoin the Trump Administration. Xavier Becerra, California’s Attorney General, has already filed 25 lawsuits against the Trump Administration. Ninth Circuit judges have taken it upon themselves to stop the Trump Agenda. New York has every right to tax its citizens as high as it wants, and does. New York residents have every right to pay the high taxes, or move. Hello Texas Hello Florida Hello Nevada A tipping point exists where high earners and entrepreneurs will leave a state or country because of high taxes as well as regulatory burdens. Connecticut has reached that point after 8 years of incessant tax increases under Governor Malloy. GE fled Connecticut for the state once known as Taxachusetts. Aetna is threatening to leave Connecticut. Ironically, Democrats like Governor Cuomo, who demonize the 1%ers, are now claiming to be fighting on their behalf. High income tax payers in New York City will now face a marginal tax rate approaching 50% of their income with federal, state, and city income taxes, The top marginal federal tax rate will be 37%. The New York City marginal tax rate is 12.7%. The combined marginal rate is 49.7% before adding social security, Medicare taxes, property taxes, and a plethora of fees. New York gets 57.2% of its tax revenue from the income tax. The Top 1% in New York pay 40% and the top 0.1% ¼ of the state’s income tax revenues. Governor Cuomo is scared the top 1% will flee. They would have gone to Connecticut or New Jersey in the past, but those states have become tax hells. Hello Florida. Mett Rush Limbaugh who left New York decades ago. Meet the wealthy retirees in Florida. Check out Texas while you’re at it. Roughly 80% of Americans are expected to see lower taxes, but not high earners in some high tax states. Governor Cuomo has found a new love for high income residents upon who both he and Governor Brown of California have bestowed “millionaire” taxes. He simply wants to tax tem as high as he can, knowing that many won’t leave the state as long as they can deduct the state income and property taxes from their federal income tax. Taxation is a political issue given to Congress by the Constitution. Governor Cuomo may not have noticed but the Democrats in Congress not only unanimously voted against the tax act, but they refused to negotiate with the Republicans. The Democrats’ blind opposition to the Republican majority leaves the Republicans only negotiating with themselves. New York could lower its taxes, but the public employee unions would object. New York is running a $4 billion deficit, setting it up for a budget disaster in the next economic downturn. What Governor Cuomo will not do is cut spending.

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