New York Governor Andrew “Blowhard” Cuomo, is blaming President Trump’s sweeping FEDERAL TAX REFORM for his state’s $2.3 BILLION deficit.
Wait one. How does this happen?
Let’s see, the FEDERAL TAX REFORM is for FEDERAL taxes. How does that reduce New York STATE TAX dollars collected?
Near as I can tell looking at their tax laws, FEDERAL TAX REFORM DOESN’T reduce the STATE’S ability to collect taxes. In fact my reading is that it should INCREASE STATE TAXES collected because those who itemize deduction have fewer ways of adjusting their gross income downwards for STATE TAX calculations.
Why does the FEDERAL TAX REFORM lower STATE TAX collection?
New York State has by far the HIGHEST STATE TAX burden in the nation. These ENORMOUS STATE TAXES were fully deductible to reduce FEDERAL TAX liability. There is now a cap of $10,000 of State and Local Taxes {SALT) as a deduction on FEDERAL INCOME TAX. Before the FEDERAL TAX REFORM ACT taxpayers in all the other 49 states were SUBSIDIZING NEW YORK TAXES! You can read my analysis of why limiting the SALT is FAIR to the nation HERE. Now who does the limits on SALT affect the most? That would be the folks in the UPPER INCOME brackets.
Seems that those in the UPPER INCOME brackets that PAY MOST OF THE TAXES are opting to leave New York state now that the GIGANTIC STATE TAX LIABILITIES are no longer SUBSIDIZED by TAXPAYERS who don’t live in New York.
Even “Blowhard” Cuomo recognizes some of the problem. He was quoted as saying, “This is the flip side. Tax the rich, tax the rich, tax the rich. The rich leave, and now what do you do?”
The Dumbocrat platform of the GREEN NEW DEAL is all for more of “TAX THE RICH“. Lizzy “Pocahontas” Warren wants a FEDERAL 90% marginal tax rate on “the wealthy”. Alexandria “Occasional-Cortex” Ocasio-Cortez is stumping for a 75% tax rate. We can see what happens in the real world when you tax the heck out of people. The money is pulled off the table before it gets into play.
This is why many of the big “American” companies pay their taxes in Ireland. The FEDERAL TAX REFORM ACT allowed some of this money to return to the US soil. If we get a Dumbocrat controlled government in 2020 and they repeal the tax reform act as they have promised, expect earnings to return to Irish soil.
“You’ll never get me Lucky Charms!“