Is this situation fair? A family of four lives in Orlando, Florida and has income of $80,000 per year. Another family of four lives in New York City and has an identical income. Each family spends the same amount on rent, food and the other basic necessities of life. The difference, however, is that the family in New York pays lower federal taxes than the one in Florida. Why is that? The answer is because the high state and local income tax paid by the New York family is deductible for federal purposes and the family in Florida pays no state income tax. So again, is it fair that the Florida family pay more federal tax than the family in New York with identical income and expenses?
Until now, the answer from the federal tax code has been that the unequal treatment is perfectly fine. The key provisions that made state and local taxes deductible were put in place by the Democrats who represented the high tax states, so they did their best to protect their voters.
In the latest tax outline from the Republicans, however, this unequal treatment is set to be phased out. No longer will the people from high tax states be treated better than those from low tax states. Everyone will be treated equally. You would think that equal treatment for all would be something that the Democrats would rush to support. After all, they tell us all the time how they favor equality. But no, the Democrats only favor equality when their voters are treated "more equal" than the rest of the country.
There is no reason that people in places like Orlando, Dallas and Omaha should subsidize the folks who live in Los Angeles, New York and Boston.
Until now, the answer from the federal tax code has been that the unequal treatment is perfectly fine. The key provisions that made state and local taxes deductible were put in place by the Democrats who represented the high tax states, so they did their best to protect their voters.
In the latest tax outline from the Republicans, however, this unequal treatment is set to be phased out. No longer will the people from high tax states be treated better than those from low tax states. Everyone will be treated equally. You would think that equal treatment for all would be something that the Democrats would rush to support. After all, they tell us all the time how they favor equality. But no, the Democrats only favor equality when their voters are treated "more equal" than the rest of the country.
There is no reason that people in places like Orlando, Dallas and Omaha should subsidize the folks who live in Los Angeles, New York and Boston.
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