WH: We don’t ♥ NY

Bud­get boss rips state in push for tax re­form

New York Post - - NEWS - By MARISA SCHULTZ mschultz@ny­post.com

Pres­i­dent Trump’s bud­get di­rec­tor on Tues­day fiercely de­fended the elim­i­na­tion of state and lo­cal tax de­duc­tions in the pro­posed fed­eral tax over­haul — say­ing the White House can’t be blamed be­cause peo­ple are flee­ing New York over high taxes.

“Is it the fed­eral gov­ern­ment’s fault that New York tax is so high that they are driv­ing peo­ple out of the state?” Bud­get Di­rec­tor Mick Mul­vaney said in an in­ter­view with re­gional re­porters.

Mul­vaney pushed back on Gov. Cuomo’s as­ser­tion that re­mov­ing the state and lo­cal tax de­duc­tions would be such a death blow that wealth­ier tax­pay­ers would leave the state.

Mul­vaney, who as a South Carolina con­gress­man was a Tea Party dar­ling, said peo­ple are al­ready re­lo­cat­ing from New York.

“I don’t think it’s up to the fed­eral gov­ern­ment to save New York from its bad de­ci­sions,” he said.

The House this week is set to vote on a re­form plan that would elim­i­nate state and lo­cal in­cometax de­duc­tions on item­ized fed­eral tax re­turns and cap prop­erty-tax de­duc­tions at $10,000.

The Se­nate’s ver­sion would hit New York­ers even harder by com­pletely elim­i­nat­ing the prop­erty-tax ben­e­fit.

Irate New York­ers point out that the state al­ready sub­si­dizes the rest of the coun­try. In 2015, New York con­trib­uted $48 bil­lion more in taxes to the fed­eral gov­ern­ment than it re­ceived in fed­eral spend­ing — the largest neg­a­tive bal­ance of any state, ac­cord­ing to a Rock­e­feller In­sti­tute of Gov­ern­ment study.

“Mul­vaney should know bet­ter, and he does,” Cuomo said in a state­ment.

“I’ll make it sim­ple: Just give New York the $48 bil­lion we send to Wash­ing­ton that makes us the num­ber-one donor state in the na­tion and he and the pres­i­dent can do what­ever they want with state and lo­cal tax de­ductibil­ity.”

Mul­vaney, though, said fair­ness should be mea­sured on an in­di­vid­ual level. Some­one from his home state of South Carolina should not be pay­ing more in fed­eral tax than an iden­ti­cal in­di­vid­ual in New York, he ar­gued.

“If I’m pay­ing more fed­eral tax than you are, I’m sub­si­diz­ing your high-tax ex­is­tence” he said. “As a tax­payer, I don’t re­ally care what my state gets. What I care about is my taxes.”

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