I was out sick for a couple days and trying to get back in the loop.
In my email inbox, I received numerous press releases from various people opposing the Republican plan to reform the tax code. The changes include cutting the corporate tax rate from 35 percent to 20 percent, reducing the number of tax brackets and perhaps most controversial, eliminating the ability to deduct state and local taxes from your federal return.
It is this last provision that has generated quite a bit of ink. Gov. Andrew Cuomo accused any New York Republican lawmaker who votes in favor of it of treason. “It’s modern day Benedict Arnold,” he said in his prepared remarks. He said that any Republican congressman should resign and stop donating to the Republican Party if this legislation passes.
Cuomo also touts his efforts to reduce property taxes during his tenure including the property tax cap.
Lost in this entire conversation is state leaders could actually try to cut taxes instead of just capping them or slowing the rate of growth. New York has one of the highest tax burdens in the country.
Regardless of your feeling on the federal tax proposal, if this passes, the ball is essentially in New York’s court on how it is going to reduce people’s tax burden.
However, that would require some difficult conversations about limiting state spending, capping or perhaps reducing the size of the state workforce and reducing state mandates that drive up the cost of doing business in New York.
There does not seem to be the political will to have that conversation.