Posted on 09/29/2017 3:23:50 PM PDT by John Semmens
A feature of the Trump Administration's proposed tax reform plan that has stirred fear among governors of high-tax states is the elimination of deductions for state income and property taxes. New York Gov. Andrew Cuomo (D) called it a "death blow" for his state.
"New York has traditionally relied on high taxes to fund the services we provide for our population," the Governor pointed out. "Resistance to these tax high rates has been moderated by the fact that deductions from federal taxes has helped pass some of the burden onto to states that have lower taxes. If we lose that deduction more New Yorkers will object to our state's taxes."
Cuomo complained that the Trump plan's replacement of state tax deductions with larger standard deductions ($12,000 for single filers and $24,000 for joint filers) "is unfair to our residents. Right now, the average deduction for state taxes for Manhattan residents is nearly $25,000. Trump's plan would allow the same standard deduction for filers living in all states. A perk that has been enjoyed by New Yorkers for decades would be dissipated into a universally shared equal benefit. How will people afford to live in New York if they're to be treated the same as residents in other states?"
New York Republican Reps. Dan Donovan and Peter King joined Cuomo's complaint asserting that "to treat New Yorkers like everyone else is unAmerican. Our state has grown accustomed to a special status. New York City would not be a world-class city without the tax-subsidy the current code allows. We will ally with Republicans from other high-tax states and Democrats to make sure Trump's plan is killed."
California is the biggest high-tax state. It currently receives a $100 billion subsidy per year under the current tax code. Sen. Dianne Feinstein (D-Calif) called the subsidy "critical to sustaining my state's status as the wealthiest in the United States. I cannot abide a tax reform that would change this even if it treats all states equally. California voters didn't elect me to achieve fairness to other states. They expect me to defend our entitlements and that's what I'm going to do."
Feinstein also cited a recent report published by the Federation for American Immigration Reform (FAIR) showing that illegal immigration costs American taxpayers $135 billion per year as further inspiration for her opposition to Trump's proposal. "As a sanctuary state, California has to bear a disproportionate share of this cost," the Senator observed. "If we lose the federal deduction for state taxes our ability to continue as a haven for these immigrants would be threatened."
if you missed any of this week's other semi-news/semi-satire posts you can find them at...
https://www.freedomsphoenix.com/Opinion/226402-2017-09-29-semi-news-semi-satire-october-1-2017-edition.htm
well.. the liberals in those high tax states have been BEGGING to pay higher taxes for decades...
Here’s their chance!
ping
Death Blow?
So Trump is for assisted suicide?
funny
That’s kind of a, er, not smart statement from someone on this board.
A LOT of states charge a hefty fee.
Shall everyone move to 10 states?
And does Trump still consider 250k rich? He had mentioned ####ing people that were wealthy.
Not much of an R statement
But let’s just pay attention to what we like to hear.
I have been arguing that liberals should be taxed higher as they demand for ages. This accomplishes that.
I wanted to use democratic registration, but this will work!
[ well.. the liberals in those high tax states have been BEGGING to pay higher taxes for decades...
Here’s their chance! ]
We should index the federal taxes off of state taxes....
You live in a state with a 5% income tax, then your federal taxes are 5%.
You live in a state with 0% income tax, your tax is 0%
You live in Kalifornia.... You’re screwed!
One has for a long time been able to send in extra monies with one’s tax return.
Somehow the ‘rats who call for higher taxes on others never seem to step up to be a leader for all of their talk.
Section 8 - Powers of Congress
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
The tax is equal. The deduction is determined by congress.
Wow, thanks, never thought of that. It's a cute little way to skirt the constitutional intent on a technicality, isn't it.
Not at all. Mortgage interest is deductible, but not equal. Those that can be affordable by the rich pay a lower tax rate. Is that fair? It is set by congress that benefits directly by their legislating.
Wow....Finstein spills the beans
I will swap the CA tax deduction for a big drop in illegals any day.
Just make it so already
GOP of CA..prepare the TV ads on this
It's a WINNER.
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