New York, Maryland, Connecticut, and New Jersey are suing the federal government over tax Reform. The suit seeks to overturn the new 10,000.00 dollar limit on Federal deductions for State and Local Taxes. New York Governor Cuomo claims that,
“The federal government is hell-bent on using New York as a piggy bank to pay for corporate tax cuts and I will not stand for it,” said Andrew Cuomo, New York’s Democratic governor.
He’s got it exactly backward.
First some context. This is a Reuters story. You can tell by the way they frame the piece in the second paragraph.
The lawsuit by New York, Connecticut, Maryland and New Jersey came seven months after Trump signed the $1.5 trillion overhaul passed by the Republican-led Congress, which cut taxes for wealthy Americans and slashed the corporate tax rate.
Republican Tax Reform cut taxes for everyone who pays taxes. It upped tax deductions for families and employers. It leaves a lot of money on the kitchen table. But that doesn’t feed the narrative in a report about rich politicians with irresponsible spending problems pimping left-wing narratives to launder your money through the IRS to backstop their irresponsible budgets.
But that’s what they’ve been doing.
These state’s that you don’t live in have been using you as their piggy bank.
They tax the crap out of the locals who then write that abuse off against the Federal treasury. Meaning you.
But if residents in these blue states can no longer use you to recover a significant portion of the beating they take at the state level from Democrats they put in office, it may no longer be equitable to stay there. People will move and take their money or their business, and those jobs with them.
Cuomo is projecting about as much as I think a Liberal can and he knows it. This lawsuit is political theatre to try and hide the fact.
Liberal states are in hock up to your eyeballs. They have no intention of slowing the spending freight train. So they need the Feds to continue using you and me to bail out that irresponsible spending.
Mr. Trump ‘built a wall’ to protect you from the Gov. Cuomo’s of the Republic. One that will cost rich blue state residents more because they have more property on the tax docket at the state and local level.
Talk about ironic.
Cuomo and company have been using us to buy off rich liberals in blue states for decades. The wealthy pay a ton in state taxes on all their expensive property. They write it off on their federal taxes. The Blue states get paid, and the rest of the country pays the price. But not anymore.
Not before the cap expires in 2025.
But Cuomo and company are welcome to their lawsuit because SCOTUS will never agree that Congress does not have the power to set that limit. Ever.
