Cuomo May Want to Be President, But He Doesn’t Know How Taxes Work Cuomo May Want to Be President, But He Doesn’t Know How Taxes Work – NTK Network

Cuomo May Want to Be President, But He Doesn’t Know How Taxes Work

The New York governor is threatening to sue over the GOP tax bill, calling the limitation of the state and local tax (SALT) deduction "double taxation." Does he not know federal and state taxes pay for different services?

By NTK Staff | 01.04.2018 @1:00pm
Cuomo May Want to Be President, But He Doesn’t Know How Taxes Work

Gov. Andrew Cuomo (D-NY), who may run for president in 2020, has made railing against the GOP tax bill a key component of his 2018 agenda.

Cuomo, who runs high-tax New York state, so hates the GOP tax bill that he’s planning to sue the federal government over the bill, arguing it is unconstitutional.

The Hill reported:

“We believe it is illegal, and we will challenge it in court as unconstitutional,” Cuomo said during his State of the State address. He called the law “the first federal double taxation in history, violative of states’ rights and the principle of equal protection.”

Cuomo’s saber-rattling may satisfy his base in New York and liberals looking for a reason to oppose tax cuts, but Cuomo is regularly missing one unavoidable reality: federal taxes and state taxes pay for different services.

Cuomo argues that scaling back the state and local tax (SALT) deduction – even though it protects taxpayers taking up to $10,000 in SALT deductions – is tantamount to “double taxation.” By Cuomo’s logic, the federal tax code exists only to allow taxpayers to write off whatever taxes the state decides to raise.

But here’s a simple lesson in governance for Cuomo, who may want to run the country in three years: federal taxes pay for federal services, and state taxes pay for state services. States sometimes have to make hard choices between either reducing services or reducing taxes, but they often cannot do both.

If Cuomo’s having a hard time dealing with the higher tax burden his residents face because they can no longer deduct New York’s high taxes from their federal tax bill, he may want to, well, lower New York’s high taxes.

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