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Another more radical idea circulating among lawmakers is to change income taxes to a “charitable donation to the state.” These “donations” would result in a state tax credit of equal value, limiting the amount of income subject to federal taxation by the same amount.

In a perfect world, Blue State Rats would try this, and it would go to the SCOTUS for a ruling. And SCOTUS would say, based on the Obamacare Ruling, it's still a TAX - LOL !!!

The new cap means states might have to drop their tax rates or cut spending, lest they face the wrath of angry constituents with suddenly enormous tax bills.

1) Andy Cuomo will never reduce spending or cut taxes. Today at his state of the state speech his two top priorities, sex harassment training and gun confiscation. 2) The idiots of NYS that elected boy Cuomo will never get angry, they are too stupid to connect the dots and besides, they get too much from their bloated government to care..

A tax is inflicted, enforceable theft of income by the state. A "donation" is a discretionary, volitional act. If an employee is not free to not pay the "donation", then it is just a tax by another name. A misnomer.

If states think the payroll tax in place of an income tax is going to just be sucked up by business, they are smoking too much recreational weed. The taxes are assessed against earned income that reflects productive labor by an employee. It doesn't grow on trees. The employees gross income must be tapped to fund that "payroll" tax. A income "cut" that is visible to the employee becomes a consideration for finding a new employer.

Too much SALT leads so sclerosis...in this case of the political system rather than of the arteries.

The solution is the same in both cases, lower consumption of SALT.

Have the companies pay more!?

Even a little.

What a wonderful idea to drive companies and manufacturers from the blue states to the red!!!

“But lawmakers are clearly motivated to mitigate the damage to their constituents.”

The funny thing here is that the “damage to constituents” has been done by these state’s lawmakers for years. They have had the Federal Government’s allowable deductions as a crutch that has kept the real issue, inordinately high state taxes, from being truly exposed to their taxpayers.
Here in CA, a young couple bought the home across the road from us a little over a year ago for $2.1 million. Under Prop 13, the new property tax assessment will be 1% of the purchase price, plus any voter approved assessments. In looking at my property tax bill, those assessments are $715. So their new annual property tax bill will be about $21,715, which means that they will get $10k taken off the top by the new Federal Tax Law leaving them with $12,000 of non-deductable expense. And of course this also eats up any deduction for state sales taxes which are 8.75% on everything but food and drugs. This new law will have a chilling effect on home sales here as you can see. CA, NY, NJ, and IL are going to have real problems and these “workarounds” they are contemplating will be most likely knocked down by the courts.

Perhaps states like New Jersey will finally address their crazy property taxes. A few years ago I was debating a move to the NYC area and began looking at areas to live. I was perplexed as to why housing prices were so low in gorgeous New jersey neighborhoods not far from the city... until I saw the property taxes. The property taxes were as high as the mortgage, which explained why the property values were deflated.