EXECUTIVE CHAMBER ANonEWM. Cuomo March 15,2018 The Honorable John J. Faso United States House of Representatives 1616 Longworth HOB Washington, DC 20515 Dear Congressman Faso: | am surprised and dismayed that you and your colleagues ssem to consistently be working against the interest of the very New Yorkers you represent. Initially, your Congressional Conference supported President Trump's tax reforms. National merits ase, you all knew fill wel that the Presidents tax reform bill targeted New York Sate tax ‘payers to pay a higher cost tun tx payers in other states, Even if yu supported the overall legislation, the New York penalty should have eaused you to da everything you could to remove it. ‘The SALT provision in the tx bill is an economic missile launched atthe heart of the State of New ‘York. The SALT provision mainly impacts twelve states and New York was hit harder than any other state inthe country. Tris penalty puts the Stat of New York at an economic structural disadvantage and takes more from New York than any other state. Most stats received a tax cut but New York received a penalty by prohibiting the deduction of state and loal taxes. Your suggestion thatthe $10,000 cap onthe SALT provision will protect “most” of your constituents i also a false Independent estimates predict home values inthe Hudson Valley and counties statewide would decline by approximately 10% than before this law was passed. Moreover, ist okay t hur of your constituents? Furthermore, your argument that twill only hue the “rich” in your district is also absurd, Property taxes wll go up foreveryone. As the Republicans have also argued, when people leave the state, property tax burden fall to those who remain, So ultimately, it huts everyone in your district Not only is this contrary to Republican orthodoxy itis also contaey to all he progress we have made in reducing taxes inthis state. My year to year state budget increases average under 2%. That i the lowest level Increase In tate budget history. Out lower spending as allowed us to reduce sate income taxes all across the board. We also passed the first 2% property tax eap in history. You were tunable to enact a property tax ap when you were a member of the legislature. ‘The SALT provision in your tax bill obliterates the 2% state propery tax cap and al the savings since its inception. Ata ‘ime when we have lowered state spending, lowered slate income taxes, capped local property taxes your Federal tax bill roverses all the progress we have made. Your Federal tax bills the fist ever tax on taxes. It makes no sense to say New York is high tx state, so-we will punish them by raising taxes more, AL least not if you supposedly represent New York tax payers. Despite your ‘hetoric, the numbers show jobs increased in upstate New York and unemployment is down. The Republican Federal tax bill may very well reverse that progress. We Wonk For tHe Peorue Penronwance » eon # PRE OeheiereeiaeerSome of your colleagues ~ yourself included ~ argue that they did not vote for the bil, while other members in your conference di. Those that did not aetualy vote fr the bill had 2 moral and ‘ethical obligation to demanc tat their leadership atleast remove the New York penalty. New ‘Yorkers will nt accept your impotence as e defense, You ar all part the New York Republican ‘delegation and can act togeter, We all know that in a legislative body, certain members are “let off" ‘the vote so they can claim inpunity. That tactic fools no one and does ot excuse the damage done to New York, You are responsible for the actions of your conference, ‘You then have the audacity to compound the problem you cause. As you know the Sste Legislatures been attempting to reduce the damage done to New York State tax payers by your Federal bill, To avoid the economic missile you have launched, we are working to shift our tax code from an income tax to an optional payrol tax and allow charitable tnttes, which are tax deductible, to provide loeal servis. Once again you and your colleagues are engaging in an attempt to negate ou efforts to defend New York tax payers. "Now, you are tryingto get the Intemal Revenue Service to preemptively issue an opinion that ‘ur States legislative attempt vo avoid the damage done by the Federal tax bill violates the IRS law. First, don’t know how youcould be seeking an IRS opinion when New York State has nt even passed a law on which they could opine. Second, I don't know why you would be trying to sabotage the State Legislatures efforts to undo the damage you have done to New York State tax payers. This isnot partisan issue, Democrats and Republicans will py higher taxes de to the Federal tax bill. (Our attempt to negate the ramifications ofthe Republican Tax Bill would help all. Your hyper- partisan activities are tothe Heriment of your own constituents. Seeking to engage the IRS in preemprory opinions smacks of politicization ofthe Internal Revenue Service. You und your colleagues have accused President Obama of poitcizing the Internal Revenue Service, and now you and your colleagues are seebing todo just that The state legislation, were it to pass, would need the approval ofthe Democratic State Assembly and Republican State Senate. If your Republican colleagues inthe State Senate passed a measure protecting New York tx payers, why would you try to stymie their efforts? They represent the same people. When do te interests of your constituents outweigh your politcal partisanship? “ANDREW ‘cc: New York State Congressional Delegation