It is finally happening, liberal states are running out of other peoples money and they are flipping out. Why are liberal states losing their minds? Because the recent tax reform bill signed into law by President Donald Trump limits how much state and local taxes (SALT) can be written off federal income taxes. The cap is $10,000.
No SALT taxes should be written off federal income taxes, period. The federal government should not be subsidizing local taxation. It a state or local area passes a tax, it should be up to the citizens who are affected by that tax who should pay for it. People from Texas should not be subsidizing taxes passed in New York or California.
Why do democrats oppose GOP tax reforms? Because eliminating those tax write offs will probably cause either a mass revolt, or a mass exodus from Democrat controlled states. The citizens from those states enjoyed the benefits of taxation, as long as someone else was paying for it. When they have to pay their own taxes, they have a change of heart. What does that sound like? Socialism. Democrats are all for tax and spend, as long as the rest of the nation was subsiding those taxes through income tax write offs.
State And Local Taxation
We are seeing the underbelly of the Democrat party, which is tax everyone to support the wealthy. Who benefits the most from SALT? Not the small land owner who owns just a couple of acres. It is the rich who own several mansions.
SALT must come to an end. No more tax write offs for the rich in wealthy states like
New York and California.
The people who can afford to leave their states will probably move to GOP held states, which could be bad for the state. Changes are the people who move will bring their ideology with them. Then, they will start trying to reform conservative red areas to their failed blue socialist ideology.
How many cities and states have to go belly up before people realize the socialist idea of tax and spend does not work? Eventually Socialist Democrats run out of other peoples money. The people are are being taxed eventually fight back. This turns us into a divided nation.
One one hand, we have states who home prices are artificially high. This is due to various tax write offs.
On the other hand, we have people who are tired of supporting rich home owners in states who have artificially high home prices.
Sooner or later something has to give. Then it becomes a us against them mindset. People in places like New York and California want to retain their write offs, while working class people are tired of subsidizing those states.
This is why Donald Trump is hated by main stream media and democrats? Because he disrupts the status quo. He understands middle class needs to stop supporting SALT.
Federal taxes should go to federal projects.
State and local taxes should go to state and local projects.
It will be a rough and tough road, but eventually SALT taxes must be supported on the local level.