“Evil” Tax Cuts? No, It’s Just Blue-State Panic

Craig HueyGovernment4 Comments

Wealthy blue-state foes of the Republican tax reform bill need to take a harsh look in the mirror.

California governor Jerry Brown has labeled the tax bill “evil in the extreme.”

According to socialist Bernie Sanders, the proposal is “one of the greatest robberies in American history,” and promotes “class warfare.”

House minority leader Nancy Pelosi likens the tax package to “Armageddon.”

Why the grim doomsday descriptions?

They aren’t surprising when you consider that California is bursting with people who earn $200,000 per year or more….and pay high state-level income taxes, with a top marginal rate of 13.3 percent.

In the “good old days,” Californians could count on deducting these obscene taxes from their federal taxable income, masking the state’s theft and blunting the financial pain.

The GOP tax bill takes away what is basically a federal subsidy, forcing blue-state taxpayers to face the reality of their high-tax, high-spending state legislatures.

California has been soaking its upper middle class for many years. The upcoming federal tax restructuring will make this reality painfully obvious.

Meanwhile, Andrew Cuomo, governor of New York, claims the GOP tax bill will “rape and pillage” his state. He actually said this!

Perhaps that may appear to be the case once New Yorkers realize that they are being pillaged by their own state income tax and move out of state in retaliation. After all, true tax pillaging begins at home…

Texas, which has no state income tax, has gained 1.3 million new residents from other states over the past 10 years.

During the same time period, Illinois and New York have lost more than 2 million residents.

 

What do you think? Write me at [email protected]

4 Comments on ““Evil” Tax Cuts? No, It’s Just Blue-State Panic”

  1. It is a travesty toward those states that didn’t vote for Trump. Of course being a Republican all of my voting life, I can’t stand California politics, I’m not a fan of what’s going on in Washington either.

  2. I don’t believe it’s fair to take away state income tax and/or property taxes. My understanding is that California gives more to the federal government than they take in. I know the tax bill is good for the rest of the country but a handful of states are subsidizing the other forty plus states. Good for Senator Collins of Maine who at least got us $10,000 of deductions. A part of me hopes the bill fails.

  3. I am not crazy about CA government, either (state or local). From what I’ve seen, the state and local politicians believe that we work for them, not the other way around. A sales tax hike “for the schools”–but the parents cannot object to what their children are being taught. A tax hike “for the roads”–that we did not get to vote on.

    Our congressional delegation? Some of them have been there for at least 25 years (this would include my representative).

  4. As a tax professional of over 35 years, I can say that this bill will hurt many in the upper middle class. Many of those taxpayers are the ones who create jobs through small businesses. The tax bill will benefit some in the lower middle class. The true “middle” class will not see as much change as some in the media portray. I am a very conservative person and I vote Republican but I am disappointed in my party right now. This bill, in my opinion, did not go far enough in many areas and went too far in others. They should have eliminated the AMT and the estate tax, not taken away personal exemptions and state tax deductions.

    The increased Standard Deduction that is proposed to help so many simplify their filing and reduce their taxes will be offset by the loss of the Personal Exemptions. So, for some, the bill will only reduce their taxes by a very small amount and may even increase the amount.

    They could have done better by not hurriedly pushing this through just to gain a political victory.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.