Andrew Cuomo, king of the blind pigs:
In response, Cuomo said his proposal, the “New York State Taxpayer Protection Act,” would eliminate the state income tax on wage earners. Instead, the state would levy a wage tax on the employer. By doing so, the tax burden would shift from workers — who face new limits on their ability to deduct state income taxes — to employers, who could still take full deductions for such payroll taxes. The legislation would spell out which kinds of companies would be eligible for this treatment.
“It may actually reduce the liability because it may bring the worker down to a lower income bracket,” Cuomo said.
The plan would apply only to wage earners. For other sources of income — including investment gains — the state would continue to run its personal income tax system, Cuomo said. The state Department of Taxation will spell out more details Wednesday, he said.
[…] The governor also proposed deferring tax credits for companies that receive $2 million or more in credits for one year, which would raise $300 million in state revenue, he said. The federal tax changes — which cut the corporate tax rate to 21 percent from 35 percent — will more than make up for that change, he said.
“They weren’t expecting the tax cut; they got the tax cut,” Cuomo said. “It’ll more than offset the deferral of our credits.”
Who knows if this will work and, really, who cares. To me, the interesting fact is that the current Republican Congress brings out the best in the worst. I don’t understand the details of this baroque proposal, but the basic idea is that Cuomo’s plan will try to keep W-2 workers from getting shafted by Trump’s tax proposal. Everyone else – by which I mean the dwindling Republican base in New York – will still get fucked. There’s many a slip twixt cup and lip, but so far, I like what I’m hearing from Albany.
Unlike California, New York’s Republicans have a lot more power than they should, and Cuomo aids and abets them for a variety of strange reasons. But when it comes down to something as key as taxes, even a sleeping dolt like Cuomo wakes up and does the right thing.
Andrew Cuomo is just a turd but this scheme may have some promise. Please keep in mind that he thinks he should be president and that he is a turd.
The worst Democrat is better than the best Republican.
Unfortunately, California’s Republicans still have some power to fuck stuff up when it comes to taxes. Tax increases require a 2/3 vote in each house of the legislature, and while the Democrats actually have 2/3 in each house it’s close enough that a couple of Democratic defections are enough to give the Republicans leverage.
An important principle to keep in mind.
Actually more progressive than the *old* tax system.
If it comes to pass.
Gin & Tonic
@zhena gogolia: Andrew Cuomo really tests that principle, though.
Which is why I expect this plan is dead on arrival, a bargaining chip to be traded away in exchange for, I dunno, funding the idiotic wrong-way LaGuardia train. It’s how Cuomo operates.
Looking forward to being wrong if this thing works.
Other than Hitlary, you mean.
@Baud: The worst Democrat is also worse than all other Democrats
interesting idea. think so far CA’s idea is better but rock on witcha bad self.
This isn’t cuomo’s idea – Vox floated it in December
@JR: It will hit the legitimately retired hard. Pensions and Social security are taxable income as are IRA withdrawals.
The original idea was that it’s unfair to tax money going to pay taxes. Likewise money for medical expenses, same for other deductions.
Just off the top of my head – if a retiree formed a Corp, some type of pass through entity and assigned all rights of any income to it and make any legatee part owner would he not be able to get lower taxes with out limit on taxes?
Boy, I wish they pulled this shit when I was a practicing lawyer, specialty taxes, estates and family law.