Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: grundle
The article misses some important points. While it's true that the Federal tax deduction for state and local taxes benefits mostly liberal, high-tax states, there are a lot of political and socio-economic variations within these states. For example ... I can't speak for the counties in every state listed in the article, but I can tell you that the three New Jersey counties there are among the most heavily Republican counties in the entire nation, let alone New Jersey.

There's a better argument for eliminating this deduction, or at least changing it. One problem with it is that some types of local services are provided differently, and therefore subject to different tax deductions. A good example of this would be garbage collection. If I live in a town where my garbage collection costs are paid through my municipal taxes, then this is effectively a deductible living expense for me if I itemize on my Federal taxes. But if I live in an area governed by a homeowner's association and my garbage collection costs are covered by my association fees, then I can't take advantage of this deduction.

I'd be fine getting rid of the deduction entirely except for the deductibility of state/local income taxes. There's no reason to subject the same income to double taxation.

8 posted on 10/13/2015 2:24:26 AM PDT by Alberta's Child ("It doesn't work for me. I gotta have more cowbell!")
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Alberta's Child

Quibbling about deductions is missing the point and shows that the battle is already lost. If the income tax is to be retained the only sensible way to do it ant the way that will suck the world’s industries into the USA (if accompanied by severe reduction in regulation) is a 9 or 10% flat tax from the first dollar of income with no deductions at all, no credits, no exemptions. Cutting more people out of the taxpaying segment of the population, as Trump’s plan would do, simply enlarges the constituency for higher government spending and higher tax rates. Bush I knew that and his tax cuts therefore had longer range effects that were designed, to be self canceling due to the increased clamor for more goodies from those who don’t think their net incomes are affected by higher rates.


14 posted on 10/13/2015 5:02:47 AM PDT by arthurus (Het is waar. Tutti i liberali sono feccia.)
[ Post Reply | Private Reply | To 8 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson