Go Back   SZONE.US Forums > Current Events > News > The Heritage Foundation

The Heritage Foundation Since its founding in 1973, The Heritage Foundation has served as a research and educational institute -- a think tank -- whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense

The Heritage Foundation

This Tax Deduction Forces Americans to Subsidize High-Tax States

Views:87
Reply
Thread Tools Search this Thread Rate Thread
  #1  
Unread 11.01.17, 02:15 PM
@Heritage @Heritage is offline
RSS Bot
 
Join Date: 06.09
Posts: 37,093
This Tax Deduction Forces Americans to Subsidize High-Tax States

On 11.01.17 12:18 PM posted by Rachel Greszler

Every year when Americans file for their tax returns, the federal government allows them to deduct their state and local taxes, including their property taxes.

That may sound good, but it has the effect of encouraging state and local governments to tax at higher levels.

Instead of having to pay the full cost of their taxes, state and local taxpayers who itemize their deductions can force taxpayers in lower-tax states to pick up a big portion—up to 40 percent—of their taxes.

As a result, state and local lawmakers are quicker to raise taxes beyond the level that is needed to finance their essential services.

On the eve of releasing their proposed tax reform bill, GOP lawmakers are now considering adding a component of the state and local tax deduction—the property tax deduction—back into their plan.

Not surprisingly, this would appease lawmakers in high-tax states like New York, California, and New Jersey who have argued forcefully against eliminating their favored tax preference.

As the below graphic shows, these high-tax states receive a huge portion of the total property tax benefits, while low-tax states like Tennessee and Indiana receive very little from the deduction.



The purpose of tax reform is to help the economy grow and put more money in individuals’ pockets. It’s not to help state and local lawmakers fill their revenue coffers.

If removing the property tax deduction (and other state and local tax deductions) would create a big burden for taxpayers in high-tax states, that’s a problem for state governments to address by lowering their tax burdens.

It’s not the federal government’s job to help high-tax states compensate for their poor policy decisions.

The post This Tax Deduction Forces Americans to Subsidize High-Tax States appeared first on The Daily Signal.



http://dailysignal.com/2017/11/01/ta...gh-tax-states/
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Rate This Thread
Rate This Thread:



All times are GMT -8. The time now is 03:17 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright ©2007 - 20017 SZONE.US All rights reserved