Cuomo To Sue U.S. Gov Over State Tax Break Change

HayJenn

Moderator
Jul 2014
70,109
60,101
CA
#1
New York Governor Andrew Cuomo said his administration plans to sue the federal government over the new Republican tax law, on the grounds that it’s unconstitutional because it discriminates against New York and other states that voted against President Donald Trump.

“Make no mistake, they’re robbing the blue states to give money to red states,” Cuomo said during his State of the State speech in Albany Wednesday. “It is an economic civil war. It is illegal and we will challenge it in court as unconstitutional.”

Cuomo, who described the Trump presidency as “the most hostile federal administration in history,” said the changes to state and local tax deductions in the bill will raise New Yorkers’ property and income taxes by at least 20 percent. The governor added that New York state already contributes $48 billion more annually to the federal government than it gets back.



https://www.bloomberg.com/news/articles/2018-01-03/cuomo-plans-to-sue-u-s-government-over-state-tax-break-change?cmpid=socialflow-facebook-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=facebook&utm_medium=social

Good for him. This is what happens when you rush a bill through with no hearings and was done mainly to please the big GOP donors.
 
Likes: 4 people
Sep 2014
5,058
1,572
South FL
#4
I can't understand why there wasn't a challenge to the pre-existing AMT then? I just can't see many people currently taking more than 24k in deductions NOT be in the AMT already.
 
Apr 2015
15,327
2,851
Katmandu
#5
New York Governor Andrew Cuomo said his administration plans to sue the federal government over the new Republican tax law, on the grounds that it’s unconstitutional because it discriminates against New York and other states that voted against President Donald Trump.

“Make no mistake, they’re robbing the blue states to give money to red states,” Cuomo said during his State of the State speech in Albany Wednesday. “It is an economic civil war. It is illegal and we will challenge it in court as unconstitutional.”

Cuomo, who described the Trump presidency as “the most hostile federal administration in history,” said the changes to state and local tax deductions in the bill will raise New Yorkers’ property and income taxes by at least 20 percent. The governor added that New York state already contributes $48 billion more annually to the federal government than it gets back.



https://www.bloomberg.com/news/articles/2018-01-03/cuomo-plans-to-sue-u-s-government-over-state-tax-break-change?cmpid=socialflow-facebook-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=facebook&utm_medium=social

Good for him. This is what happens when you rush a bill through with no hearings and was done mainly to please the big GOP donors.
How stupid, why does Cuomo think that New Yorkers should pay less federal income tax than people in other states?
 
Likes: 1 person

HayJenn

Moderator
Jul 2014
70,109
60,101
CA
#6
I can't understand why there wasn't a challenge to the pre-existing AMT then? I just can't see many people currently taking more than 24k in deductions NOT be in the AMT already.
There was in one of the bills (can't remember if it was the House or Senate bill that did away with the AMT} So they came to a comprise and raised how much you had to make to be subject to it - 109K for a married couple. That still impacts a lot of people in negative ways. It's easy to be a two earner family making 60K per year each.
 

Rasselas

Former Staff
Feb 2010
71,003
47,859
USA
#7
I'm thinking of the same of the CA republicans who voted for it.

I can just see the attacks ads.
I think they may be in trouble but consider this: Except for Orange and San Diego counties, most of our GOP reps are from districts with lower-than-average median incomes. Not that many wealthy Californians in those districts, and they are the ones who will feel this hit the hardest. On the other hand, 44% of the people in my county are on Medi-Cal, which our congressman voted to cut severely. That's the big issue here. I'm already seeing billboards about it. #vota!
 
Likes: 1 person

HayJenn

Moderator
Jul 2014
70,109
60,101
CA
#8
How stupid, why does Cuomo think that New Yorkers should pay less federal income tax than people in other states?

Mmm, I guess you missed this part


The governor added that New York state already contributes $48 billion more annually to the federal government than it gets back.


People in NY, NJ and CA pay far more in federal tax than most other other states do.
 

HayJenn

Moderator
Jul 2014
70,109
60,101
CA
#9
I think they may be in trouble but consider this: Except for Orange and San Diego counties, most of our GOP reps are from districts with lower-than-average median incomes. Not that many wealthy Californians in those districts, and they are the ones who will feel this hit the hardest. On the other hand, 44% of the people in my county are on Medi-Cal, which our congressman voted to cut severely. That's the big issue here. I'm already seeing billboards about it. #vota!
Fun fact - OC turned blue last election for the first time in decades.
 
Sep 2014
5,058
1,572
South FL
#10
There was in one of the bills (can't remember if it was the House or Senate bill that did away with the AMT} So they came to a comprise and raised how much you had to make to be subject to it - 109K for a married couple. That still impacts a lot of people in negative ways. It's easy to be a two earner family making 60K per year each.
My point though is about the AMT prior to the change. In other words, the basoc chagrin is that higher income blue staters who currently deduct state taxes won't be able to do so.

But anybody in the AMT already is impacted by this ALREADY.

So if you're itemizing less than 24k, who cares? The 24k is more.

If you were itemizing more than 24k what are the odds you weren't in the AMT?
 

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