Posted on 11/25/2017 9:32:59 AM PST by John Semmens
A provision in the Republican tax reform that would eliminate the itemized deduction for state and local income taxes has prompted New Jersey State Senate President Steve Sweeney (D) to reconsider his Party’s plan to raise the state income tax rate to 10.75 percent.
“While the new rate would only apply to those in the highest tax bracket the loss of the opportunity to deduct the taxes they pay to New Jersey from their federal tax liability could have significant negative impacts on the state,” Sweeney warned. “Without these federal deductions for state taxes the full burden for state spending will fall on our taxpayers alone. New Jersey voters’ willingness to bear this burden is in doubt.”
U.S. House Speaker Paul Ryan (R-Wis.) hailed Sweeney’s reluctance to raise New Jersey’s income tax rate, calling it “one of the intended outcomes of our bill. The federal deduction has encouraged state legislatures to boost tax rates and frivolous spending higher than they would otherwise dare to do. By eliminating the option of passing on some of the burdens of bigger government to residents of low-tax states we are leveling the playing field. If New Jersey voters want bigger government let them pay the full price of it by themselves.”
Rep. Peter King (R-NY) opposes eliminating the deduction contending that “the high-tax states have become accustomed to the subsidies from low-tax states that result from the current tax code. Withdrawing them will cause severe distress and force changes that those who govern the high-tax states would prefer not to have to deal with.”
if you missed any of this week's other semi-news/semi-satire posts you can find them at...
https://azconservative.org/2017/11/25/congressman-claims-constitutional-immunity/
Go ahead an raise the rates, and people in NJ will live happily thereafter.
So other states have to subsidize high taxing states. Not fair.
DemocRATS looking to destroy their economies even more than now. Let ALL of the people in those states pay for it all. No more free rides for losers, bums, misfits, and fraudulent residents.
“Without these federal deductions for state taxes the full burden for state spending will fall on our taxpayers alone. New Jersey voters’ willingness to bear this burden is in doubt.”
These people actually say this with a straight face?
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