Dec
15
2012
3

End the state/local tax deduction!

I’m with Instapundit and National Review Online: if you’re a Democrat talking tax hikes and you are NOT talking about ending the deduction of state/local taxes from federal returns, then you are simply NOT being serious on fiscal responsibility.  Particularly since it’s a tax that mostly avoids the middle class (NRO worked it out as “households in the $200,000-and-up range would pay an average of $5,166 more without the deduction, while those in the $30,000-to-$50,000 range would pay only $70 more”).  But, of course, if that happens then a lot of high-tax states – which, shock! Surprise! vote Democratic – are likely to discover that their constituents will suddenly have a remarkably different (and more jaundiced) view over what exactly constitutes a reasonable state/local income tax burden.

Which should not stop the GOP from taking this policy initiative, smiling nicely at the Democrats, and folding said initiative until it’s all corners…

Moe Lane

PS: Actually, I live in a high-tax Blue state. So Democrats don’t even have that excuse for being so regressive about this, the greedy piglets.

Nov
21
2012
8

End the state/local income tax deduction! #fairshare #sharedsacrifice

Charles Lane (no relation) makes the obvious point:

What the deduction does is enable higher-income states and localities to tax — and spend — more than they otherwise would, while shifting some of the cost to other states. It also encourages them to collect revenue in forms that are easier to deduct on federal returns.

Two states, California and New York, reaped almost 30 percent of the deduction’s value in 2009, the latest year for which I could find Internal Revenue Service data. Other states that benefit disproportionately include Connecticut, New Jersey, Illinois, Massachusetts and Maryland.

I’m arguing against interest here, by the way.  My taxes would go up.  I assume, so would Charles’.  And so would about 3/4ths of the Media elite’s, which is why you’re going to see a lot of people in print and broadcast journalism get the vapors over this.  These folks are on the sweet side of a wealth transfer, after all.

…Which is something that they should be disclosing, mind you.

Moe Lane

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