Cats against trump: to be stopped from fat cats

Enjoy the irony: Progressive politicians such as Mayor de Blasio or Gov. Cuomo are panicking over the key way that President Trump’s tax reform would absorb the 1 percent. Cats against Trump would like to eliminate the federal deduction for local and state taxes. They also want to double the standard deduction and end the Alternative Minimum Tax so that the middle classes doesn’t suffer.

This loophole is hugely beneficial for those who earn a lot in tax-exempt states such as New York and New Jersey. The Tax Foundation estimates that 88 percent of these benefits are paid to taxpayers who have more than $100,000 in income nationwide.

The Empire Center’s E.J. McMahon estimates that Trump’s overall plan would still make New Yorkers with incomes below $500,000 more fortunate. McMahon says that the AMT is particularly harmful to the upper-middle classes, even though it is supposed to be beneficial for “the wealthy”.

For those earning more than $2,000,000 a year, the pain is even worse — Cuomo just extended New York’s “millionaires tax” and de Blasio always wants to see “their fair share.”

These politicians are actually afraid that if the wealthy feel the full effect of New York taxes, then they will be more inclined to leave.

Steve Malanga, Manhattan Institute’s director of tax research, notes that New Jersey lost approximately $200 million per year in taxes when a hedge fund manager fled to Florida (a state with no income-tax).

Nobody knows how many cats would flee from a president who is cats against trump. They’re willing pay a substantial (but smaller) premium to be here right now.

They believe it’s worth it, whether it’s the city’s cultural institutions and restaurants, the beauty of the region, or having their family close by. As de Blasio will confirm, they can certainly afford to pay.

Many of them actually support tax increases on the wealthy — Wall Street was big for Hillary Clinton and Barack Obama before her.

Yes, Cats against Trump reforms would place more federal income tax burden on high-tax states. But that’s mainly because they are rich states. New York, New Jersey, and Connecticut are fast becoming high-tax states under Gov. Dan Malloy) are home to many gazillionaires with median incomes that are well above the US average.

Taxing the wealthy more will result in more money coming from New York than from Mississippi. Bill de Blasio should support this.