[sphinx]

The deductibility of state and local taxes is simply a subsidy to high tax, high spending state and local governments. It is also regressive. It has always been bad policy. It should be eliminated now. Yes, there will be adjustment pains, but it is indefensible on the merits.

The deductibility of home mortgage interest is primarily a subsidy to mortgage lenders and realtors, who work on commission and who benefit from higher housing prices. For homebuyers, it inflates the initial price. Homebuyers of course eventually become home sellers and stand to recoup the artificial premium they paid at the front end, but over the life of the mortgage, it is essentially a wash. (While mortgage lenders and realtors cash in at both ends ....) Of course, most people don't understand this.

[1Old Pro]

The deductibility of state and local taxes is simply a subsidy to high tax, high spending state and local governments.

I hope that there is a revolution in New York to cut the taxes, state and school taxes are legal robbery. We can only hope this sparks a movement to cut these taxes, which means these states need to cut their spending.

[SkyPilot]

The deductibility of state and local taxes is simply a subsidy to high tax, high spending state and local governments

Not true. Many of the high tax states (NY, CA, NJ, etc.) subsidize the low tax states in terms of federal revenue sent to Washington and money received back. Some states get back pennies on the dollar, some get back several dollars.

Further, by eliminating the deduction, there will be no incentive for localities and states to lower their tax burden on families. The families will simply be punished. If the GOP wants to play raw politics, this isn't the way to go about it.