Didn’t Realize Governor Cuomo Was This Unintelligent

The state of New York’s Governor Cuomo is upset at the tax bill.  All of a sudden, New York citizens of are going to realize the high taxes they pay aren’t subsidized anymore by the rest of the United States.  In what can only be compared to something out of Ayn Rand’s Atlas Shrugged, Cuomo has proposed a “fairness tax” to tax carried interest on private equity funds at ordinary income rates.  Yesterday, I blogged about how we don’t teach finance to our children in school.  Clearly, Governor Cuomo didn’t learn anything about finance in school or at home either.

Cliff Asness tweeted about the hypocrisy of Cuomo’s potential policy.

I love it.  In many states, the bright spots of growth are the venture capital funds, the private equity funds, the hedge funds, and the real estate funds.  They take risks and create jobs.   Cuomo and others that think like him will chase that away.

This is not that much different from proposals regarding transaction taxes which have been floated by Democrats in Illinois for the past several years. The reasoning behind taxes like this are amazingly short-sighted and just dim.  Someday in the future, the entire fund management industry and capital market industry will be residing in places like Texas and Florida.  I can only expect California to pile on soon.  There will be a giant sucking sound as capital leaves the states that decide to recklessly tax it for no good reason other than to prop up their cronies.

6 thoughts on “Didn’t Realize Governor Cuomo Was This Unintelligent

  1. The father was no angel, but this apple fell far from the tree intellectually. He is a mess, and he is gaming the NYS books to set himself up for a 2020 National run. NYS has been on a rough run, Pataki’s last term was poor, he was followed by the utterly despicable Client #9/Bulldozer. Cuomo is passable by comparison to predecessors, and his downstate competition, the socialist formerly known as Warren Wilhelm.
    I’m sure you are seeing much of the same in Chicago/Illinois.

  2. This is beautiful. Let the states pay for their own programs. Those that choose not to support them can vote out the geniuses that put them in place.

  3. Wondering if this is the time to call the question. In Illinois Daniel Biss and many Democrats want a transaction tax, public health care and a very progressive income tax on the wealthy. In NY, they want to tax carried interest. Hey, instead of fighting it let’s do it and see where the chips fall.

  4. I don’t want them to leave NY or Il or any of the other hot mess states. They bring their politics with them and they are effectively plague rats bringing their disease with them. Let them stay and continue to vote dem in the gulags they voted their states into.

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