Faso response to Cuomo: lower cost of NY government

Rep. John Faso, a Republican who has taken his share of criticism from Gov. Andrew Cuomo since taking office a year ago, fired back after the Democrat’s State of the State speech on Wednesday, saying that Cuomo’s complaints about the new federal new tax code overlooks the longstanding problems that already drives New Yorkers to other states and hinders business.

Faso said in his reaction statement: “Gov. Cuomo’s message ignores the reality that our residents are fleeing New York State in record numbers seeking lower taxes and better job opportunities. All of this was happening before federal tax reform. New York ranks 49th or 50th in being unfriendly to business development and Mr. Cuomo said nothing yesterday to fix this problem. Instead, he holds out the false notion of suing the federal government over loss of the SALT deduction, which is a complete non-starter with little legal merit.

“Changing to a payroll tax system would be extremely complicated and will likely be met with resistance from taxpayers and businesses alike. The solution is to lower the cost of government in New York and make our state a place where businesses can create jobs so our people don’t have to flee.”

Cuomo, who has repeatedly condemned the Republican tax-code revision as a gift to the rich and a blow to New York, since it caps the deduction for state and local taxes, did so again during his speech on Wednesday, and vowed to sue the federal government to challenge the deduction cap. He also suggested other taxing approaches the state may consider to circumvent that $10,000 limit, which he argued was unconstitutional.

“There is no conceivable justification,” he said. “New York is already the number one donor state in the nation. We pay $48 billion more to Washington than we get back. No state contributes more to the federal government and gets back less than New York State.

“On top of that injustice, Washington’s tax plan now uses New York and California as piggy banks to finance tax cuts for Republican states. New York will pay an additional $14 billion on top of the $48 billion that we currently pay. Remember the old adage, robbing Peter to pay Paul? Well, they changed it. You’re now robbing the blue states to pay for the red states. It is crass, it is ugly, it is divisive, it is partisan legislating, it is an economic civil war. And make no mistake, they are aiming to hurt us. This could cause people to leave the state of New York.”

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