There are a lot of folks enjoying the situation blue states find themselves in, but like the rest of the world, whose tax systems and socialisms have been artificially propped up by the US's non-competitive tax system (35% until this tax bill), in order to remain competitive, nations will be forced to trim their socialism in order to remain competitive with the US.
Similarly high property/income tax states have lost the artificial "support" of tax deductions of these items against the Federal bill. This will force these states to have to trim their tax bills (and with it their socialism) or risk losing their businesses and tax paying populaces.
I think Trump sees this as another deal to negotiate. Assume that cash repatriation and a 21% Corporate Tax rate brings an economy on fire -- bounty as a consequence of a supply side tax bill is seen everywhere -- simply undeniable. Supply side finally wins the argument against the Keynesian. Bounty enough to more than "pay for" and justify still more national tax relief.
High tax states lost income tax and property tax deductions -- what would they do to get them back? Lower or eliminate the Capital gains tax? How about a top (or flat) personal tax rate of 15%. Lower the Corporate tax to 15% or lower? Or maybe all of them?
Democrats might strangely find themselves on the side of trying the lower their tax burden and might be desperate enough to go to great lengths to do that.
FReegards!
