GOP's New Plan Hikes Taxes On Americans In Blue States
Source: TPM DC
SAHIL KAPUR FEBRUARY 27, 2014, 6:00 AM EST4347
A central feature of the House Republicans' ambitious new tax reform bill would raise taxes disproportionately on residents of blue states -- especially middle-to-upper income people who live in New York and California.
The sweeping proposal released Wednesday by Rep. Dave Camp (R-MI), the House's top tax writer, eliminates the deduction for state and local taxes, which lets taxpayers who itemize deductions subtract general state and local taxes when calculating their federal taxable income. It's currently the seventh most expensive tax break in code, costing the federal government about $1.1 trillion in revenue over a decade, according to the Congressional Budget Office.
Camp's plan wipes out this break for individuals in tax years beginning after December 31, 2014. "The provision would eliminate a tax benefit that effectively subsidizes higher State and local taxes and increased spending at the State and local level," reads a summary of the House Ways & Means Committee chairman's proposal. It pairs the elimination of the tax break with an increase in the standard deduction, which somewhat cushions the financial blow.
The two states that benefit most from the tax break are high-income, high-tax California (whose residents use up 17.2 percent of the cost of the deduction) and New York (13.3 percent). The contrast with low-tax, red states is stark: New Jersey, despite having a third of the population of Texas, eats up more of the deduction than the Lone Star State.
Read more: http://talkingpointsmemo.com/dc/gop-tax-plan-state-local-deduction-liberal-states
ctsnowman
(1,903 posts)need to throw this right back in their faces. Why do they want to punish success? They are trying to raise taxes. Punishing job creators etc.
Historic NY
(37,452 posts)perhaps the blue states should demand more of the money they pay to Washington be returned to them rather than the red states.
mountain grammy
(26,638 posts)and Fox will convince their idiot viewers that this is good for them, and they will convince their idiot neighbors, and, in the end, it will all be Obama's fault. How dare we elect Democrats to office, especially non whites!
blackspade
(10,056 posts)This also effects those of us in 'red' states like KY.
The critical part of the reasoning is that the deduction "subsidizes....increased spending at the state and local level."
That is the money shot. It is designed to undermine state and local tax codes that pay for public services.
apnu
(8,758 posts)I'd love to see what that ass-hat as to say about this stupid scheme.
lastlib
(23,257 posts)No, just tell him to STFU and STAY that way!
LittleGirl
(8,287 posts)and we paid a higher percentage of income to taxes than ole Mitt Romney did. I want to know WHY? why us peons pay more than him % wise?
madrchsod
(58,162 posts)every time you think they can`t they do.