End of the week quick takes focus on comments about the recently passed tax plan. Some different perspectives and…interesting opinions in this edition…
Do What I Say, Not What I Do
Former Treasury Secretary Jack Lew, who served during the Obama Administration, said that the recent tax bill was a ‘ticking time bomb’ because of the large increase in the national debt that will result.
That is a very legitimate concern and the largest drawback to law Over 10 years, even if optimistic estimates of increased economic growth play out, the debt will increase by hundreds of billions of dollars (the initial estimate by the CBO is $1.5 trillion). At some point, that will have to be addressed.
However, it’s ironic and strangely odd that this concern would come from the Treasury Secretary who helped form economic policy during an Administration where the national debt doubled, rising roughly $10 trillion, in 8 years.
But That’s My Money!
New York governor Andrew Cuomo said earlier this week that the recently passed tax reform bill was bad, in part, because it unfairly penalized high tax states by limiting the deduction for state taxes to $10,000. Well, yes, yes it does.
Or said another way, others will no longer be subsidizing people from high tax states by allowing them to pay less in federal taxes.
There is, of course, one obvious solution: stop having such high taxes.
That is just too much to consider for Cuomo. So he has announced that he is having the state of New York sue the federal government in an attempt to invalidate the law, saying its unconstitutional. Unconstitutional? How is that, you may ask. Good question, but that has sort of become ‘the thing’ to do when you disagree with a law may threaten to not give you as much money as you have started to feel entitled to getting.
So, we have one government suing another government, taking up a courts time and resources because…well, because it’s so important to settle the question of who gets more of the taxpayer’s money.