Republican tax bill would tie the hands of blue-state governments

Washington Examiner ^ | 12/11/17 | Joseph Lawler

[x1stcav]

The tax overhaul would raise the taxes of some earners and make it harder for states to do the same. The ultimate effect would be to decrease governments’ ability to raise taxes and increase spending – essentially reining in state budgeteers.

That is an advantage to conservatives who have long sought to advance fiscal conservatism at the state level and who see the state and local tax deduction as a subsidy for high-spending, high-taxing states – that is, blue states.

“This was our point from the start,” said Jonathan Williams, chief economist at the American Legislative Exchange Council, a group that advocates free-market policies for state governments.

“We hope that it engenders more fiscal discipline at the state level in those high-tax states,” Williams said.

[Mariner]

“Sure, it works like this:”

How it really works:

Irs: Give me 39%
New Yorker deducts his 10% in SALT (or whatever level it may be) and pays IRS $40,000.

While somebody in another state pays $9,000. Without much for SALT deductions.

Worse, we have people on this forum and elsewhere who pay absolutely NO income taxes clamoring for the guy in NY to pay more.

[Mariner]

Pinging Texas payer to post #80 on this thread.

[Jarhead9297]

What I find amusing is that it used to be “conservative” when the Government need to find 1.4 trillion in additional revenues for their so called “tax cuts” we’d demand come hell or high water that the government shrink and cut spending to make up the difference or no deal.

Not anymore. The mantra is to do whatever is necessary for a “deal”, to make our President look good and to do otherwise is a Never this and never that rubbish.

If that’s the marker count me as a Never this or never that

[MeanWestTexan]

I pay $19,000/year in property taxes on my home in rural West Texas.

Our tax rates are so high because, due to our supposedly Republican legislature, county tax rates over 1.09% are primarily sent to Dallas and Houston. So in order to get an effective 1.2% tax rate needed to fund our local schools, they charge us 1.8% (because .6% is siphoned off).

Note, this is MY HOME. Not my ranch.

This is screwing a lot of rural people in Texas — who don’t have the votes to stand up to the big cities.

[Rome2000]

If Trump would have run on eliminating income tax deductions for W-2 workers while letting corporations keep theirs, I would have been one of those people dragged out of his rally’s for protesting, and he would be saying “get him out”.

He also would have never won.

This is a complete betrayal and scam orchestrated by Goldman Sachs “Too Big To Fail” jewish Banksters Mnuchin and Cohn, who have devised a scheme to make it impossible for W-2 workers to mitigate their tax exposure in the same way that corporations can still do.

This is also unequal protection under the law, a 14th Amendment violation.

Got to hand it to Trump though, he just solved the deficit and the Social Security shortfall.

The amount of new revenue the scumbags in DC are going to bring in as a result of giving the W-2 suckers no place to hide is going to be ENORMOUS.

And he BEAT ISIS! .

This scam will be the end of his legislative accomplishments though, unfortunately.

Oh and my medical deductible is still up to $6,800 from $500 before Obamacare.

What started out with a lot of promise, ends up with one term and a communist majority in Congress and the WH that will last a generation.

But Goldman Sachs and the BANKSTERS got what they needed.

[MountainWalker]

I guess it’s safe to assume from your profile that you live in California, so that explains a lot. You don’t seem bothered enough by California’s tax rates to move out of that cesspit, so why should we literally give your horrible communist local officials a financial incentive to keep raising your taxes further at the expense of the federal treasury? It makes literally no sense.