Dem governors push back against GOP tax reform plan

The Democratic governors of New York and California staked their opposition to the GOP’s tax reform plan on Friday, saying the plan would lead to major tax increases for residents in their states.

In a joint conference call with reporters, Govs. Andrew Cuomo (N.Y.) and Jerry Brown (Calif.) accused the Trump administration of using the tax code to punish blue states that supported Hillary Clinton in November.

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Brown slammed proposed changes to corporate taxes, accusing Republicans of orchestrating a transfer of wealth from middle-income Americans to corporations.

“Very simply, this is an income transfer from people, human beings, men, women and children, to the impersonal entity called corporations,” he said.

“This is an attack on California, New York and New Jersey, and other states that would not vote for Trump,” Brown added. “It’s a gross manipulation of our tax code.”

The governors took issue with the GOP’s plan to eliminate state and local tax deductions, saying the move would adversely affect their states and warning of an exodus of wealthy residents.

“Higher-income people will move,” Cuomo said Friday.

In a separate statement, Cuomo’s office said that eliminating the deductions would lead to an average increase of $5,300 for middle-income New Yorkers.

During the call, Cuomo accused Republican lawmakers of ignoring their constituents, arguing that the plan would fail easily if lawmakers voted the way their constituents want.

“So for those Congresspeople the question is, are you more loyal to your district or are you more loyal to your political party boss?” Cuomo asked.

“Maybe it’s a confusing topic and people don’t understand it today, but I guarantee you they will understand it a year from today when they walk into an election booth.” 

Rep. Kevin Brady (R-Texas), the chairman of the House Ways and Means Committee, has said that he anticipates announcing a compromise on the deductions next week.