Why should W worry over NY? They are Blue in 2000 and 2004......
First the deduction could be eliminated for the rich: those with income of over $100,000.
Since New York turned its back on Bush twice, he can tell it to go take a hike.
Another tax increase. Taxing taxes.
New York officials also worry that the change could lead taxpayers, newly burdened with the added expense of lost deductions, to demand lower local and state taxes.
For some, that is just the point. ''If you believe, as I do, that the state and local deductions encourage higher spending in states,'' said Bruce Bartlett, a domestic policy adviser to Ronald Reagan and a treasury official for the first President Bush, ''then abolishing the deduction will help bring this spending down and will also cause people to demand lower taxation.''
And that be what Bloomie, et.al, are really (really) worried about.
Kalifornia would be hit hard by this, too.
Breaks my heart!
No more federal subsidizing of NYC elite.
If New York suffers because of this change, then NY needs to change and stop the giveaways, freebies, and special interest handouts that make NY perhaps the most expensive and inefficient government in the first world. Sure, you can blame the politicians, but remember, we the voters are the ones who return these idiots back to Albany year after year. Since NY remains the same regardless of the party in control (in theory, we have had a Republican Governor and Senate for the last 10 years), the only way to force change is to vote the bums out by voting for the challenger regardless of party. It can't get any worse.
Why should the Red State Federal Tax payers support the outrageous local and state taxes in the Blue States by keeping the deduction re federal taxes.
I live in California, and this would be another signal for the tax and spenders in Sacramento to get their act together.
California, NY, Oregon, and other high tax and spend blue states need the red hot focus of removal of the deduction of state taxes from our federal tax burdens. Most of our taxes are wasted in/on the Blue Voter factory cities of the Rats, like LA, Gay Frisco, Chicago, Portland, NY City, Boston and _________________. (fill in the blank).
Ponder this one for a second:
When did states' rights get distorted to involve "the right to tax first"?
The correct way to handle taxes seems to be a common federal tax on everyone, then let the states allow deductions for federal tax paid in their own taxation schemes.
The way we work it now, the fiscally responsible states are subsidizing the less responsible ones. Let the voters of each state reward or punish their politicians according to their abilitiess to restrain spending.
OTOH, along with this tax reform must come an end to unfunded mandates. As a Kali resident, I firmly believe that our "budget crisis" would never have happened if the federal government had either enforced the immigration laws or if our courts had allowed us to deny social services to illegal immigrants. Even allowing the state to deport illegals instead of paying them welfare, food stamps and free education would resolve the issue. The sickening part is that because the illegals' kids are less well prepared, their education is more costly than the education of our own citizens.
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John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html
Not to worry, Hillary and Chuckie Schumer are there to represent their, uh, er, I mean, the interests of New Yorkers.
I'm torn. On the one hand we really benefit from the deduction, but why should other taxpayers subsidize NYers. Plus, if we couldn't deduct it, maybe that would encourage NYers to make it clear to our state and local office holders that we won't tolerate ever increasing taxes. We loved that reduction we got from 43, but the state and local pols have eaten most of it up. The pols giveth with one hand and taketh away with the other. ENOUGH.