Republicans embrace tax hike targeting Democratic states

[camille70]

I'd probably use the word "impacting" vs "targeting" but I just used the title of the article.


WASHINGTON (AP) — Republicans aren’t usually big on raising taxes, but they’re really eager to eliminate the federal deduction for state and local taxes.

Why? A look at the states that benefit the most from the tax break helps explain it — they are all Democratic strongholds. New York, Connecticut, New Jersey and California top the list of states where taxpayers get the biggest deductions. Not a single Republican-leaning state ranks in the top 10.

“Although Republicans usually recoil at any type of tax increase, cutting this tax break would almost be fun for them,” said Martin Sullivan, chief economist for Tax Analysts. “It provides massively disproportionate deductions to high-tax states controlled by Democrats.”

Proposals by House Republican leaders and President Donald Trump would repeal the tax break as part of their packages to overhaul the American tax code. But they are getting a lot of pushback from Republican lawmakers in Democratic-controlled states.

The standoff illustrates how hard it is for Congress to eliminate any popular tax break, even one that primarily benefits the ruling party’s political opponents.

Almost 44 million claimed the deduction in 2014, according to IRS statistics. That’s nearly every taxpayer who itemizes deductions, a little less than 30 percent of all taxpayers. Sullivan analyzed which states would be hit hardest by repealing the tax deduction. The Associated Press did a similar analysis and came to the same conclusion.


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Republicans embrace tax hike targeting Democratic states

 

[Winken]

I'm guessing it will be misinterpreted by voters, who will vote against Republican candidates in 2018. The Repubs will have a lot of making up to do for 2020.

 

[He is Risen 72]

This would affect all states, the title is misleading.

 

[Goonie]

This would affect all states, the title is misleading.

As the op said the title should be 'impacting' since it is democratic states that most benefit from this tax break.

 

[SeventyOne]

It's a good thing dems like high taxes.

 

[He is Risen 72]

As the op said the title should be 'impacting' since it is democratic states that most benefit from this tax break.

Ah, I am sorry, I did not see that.

 

[mark kennedy]

Raising $1.3 trillion over ten years sounds like quite a prize for the GOP, especially when it comes at the expense of Democrats.

 

[Hank77]

I'm more concerned about eliminating the family member exemption and the head of household tax status.
Many lower middle and single parents will end up paying more in taxes than they have in the past.

 

[Albion]

This is one of the reasons that tax reform--which almost everyone says they favor--has such a hard time getting passed in Congress.

The most obvious approach is to eliminate some deductions that favor certain people but not other people. That's the case with this proposal.

But of course, the people who would lose one immediately howl that someone else;s deduction is the one that should go.

 

[Hank77]

The most obvious approach is to eliminate some deductions that favor certain people but not other people. That's the case with this proposal.

If this is the case, then shouldn't those states which collect state income taxes get back their fair share of the federal income taxes that they paid in rather than it being distributed to states that have paid in less in federal income taxes?

People will be taxed on a tax paid.

 

[hislegacy]

So which is it? A tax hike or the repeal of a tax break?

Keeping in mind what the ademocrats called it when they repealed the Bush tax breaks.

 

[Hank77]

So which is it? A tax hike or the repeal of a tax break?

Keeping in mind what the ademocrats called it when they repealed the Bush tax breaks.

It's the repeal of an itemized deduction.

 

[hislegacy]

So it is not a tax hike. Need to change the title.

 

[Goonie]

So it is not a tax hike. Need to change the title.

Actually it is still a tax hike, since they will have budgeted for the tax break.

 

[hislegacy]

It's the repeal of an itemized deduction.

Actually it is still a tax hike, since they will have budgeted for the tax break.

Not according to Hank.

When will the thread title be changed??

 

[Nithavela]

Not according to Hank.

When will the thread title be changed??

Didn't know that Hank was the sole arbiter of truth this weekend.

 

[hislegacy]

Didn't know that Hank was the sole arbiter of truth this weekend.

Yup, it was unanimous, don't worry you're next week.

 

[Goonie]

Not according to Hank.

When will the thread title be changed??

The effect is a tax hike. It's more accurate to say that the impact of withdrawing tax breaks will impact democratic states more than republican,

 

[hislegacy]

The effect is a tax hike. It's more accurate to say that the impact of withdrawing tax breaks will impact democratic states more than republican,

Then, by that reasoning, those states also had a disproportionate tax reduction in the previous years, more than Republican.