November 16, 2017

The Washington Post (Morning Plum): Tax Plan Favors Trump States

media mention

The House GOP tax plan nixes most state and local deductions, hitting higher-taxed states harder. Jim Tankersley reports on a new analysis by Carl Davis of the Institute on Taxation and Economic Policy in Washington:

The House bill would raise personal taxes on Californians and New Yorkers by a combined $16 billion in 2027, Mr. Davis found, while cutting personal taxes on Texans and Floridians by more than $30 billion in total. … “It’s not unusual for a tax bill to have varying impacts in different parts of the country,” Mr. Davis said. “But the degree to which this bill makes winners and losers out of different states is remarkable.”

Tankersley notes this will produce “a large geographic transfer of income.” That is, from weenie coastal elite liberal states to Real America. Read more