NY Governor Cuomo Calls For Inspector General To Investigate Politicization Of The U.S. Tax System

Governor Cuomo Calls for Inspector General to Investigate Politicization of the U.S. Tax System:

Call for Investigation Comes After Last Week's Egregious IRS Regulation "Clarification" Aimed at Benefitting Red States

Governor Andrew M. Cuomo today sent a letter to the Treasury Department's Office of Inspector General, calling for an investigation into the politicization of the U.S. tax system after the federal government's continued attempts to block New York's efforts to provide relief to middle class taxpayers while continuing to support programs in states that voted for President Trump. 

Last week, the IRS announced a so-called "clarification" of their regulations limiting charitable donation deductions, stating that the new limitation does not apply to business interests —- a transparent effort to bolster President Trump's political allies and assuage the school voucher program constituency.  In fact, Secretary Mnuchin affirmed that the new proposed regulation would have "no impact on federal tax benefits for business-related donations to school choice programs," removing any doubt that this "clarification" is aimed at states that offer education credits. 

"The federal government has again launched a partisan assault on New Yorkers by further politicizing the implementation of the tax law to favor taxpayers in red states," Governor Cuomo said. "With this new 'clarification' President Trump has once again confirmed exactly where his allegiances lie - with the States that voted him into office in the first place. We will continue to fight back against Washington to protect thelivelihood of New York taxpayers being threatened by these politically driven actions."

The Governor also issued a letter to the IRS urging the agency to resist the proposed regulation blocking New York's charitable contributions program and the clarification benefitting red states over blue states and big business over individual taxpayers. In the letter, the Governor threatened to file a lawsuit against the federal government for their continued unconstitutional attacks on New York taxpayers.

The Governor's actions build on his commitment to fighting back against the federal government's partisan tax bill, which would cost New York's taxpayers an additional $14.3 billion per year and provide corporations with additional tax breaks. Governor Cuomo took immediate action to protect New Yorkers against the federal tax law by reforming the State's tax code to minimize the impact of the SALT limitation. In the FY2019 Budget, the Governor created a new state-operated Charitable Contribution Fund, incentivizing contributions through a State tax credit equal to 85 percent of the donation amount.

The IRS responded by proposing politically motivated regulations to further the agenda of the Trump administration and block New York's charitable contributions program. Now, the IRS has issued a "clarification" of their SALT-related proposed regulations, stating that their new limitation does not apply to corporations and businesses - just to individuals.