GOP tax plan – a rebuttal to the rebuttal on SALT

Greetings!

As the Republican tax plan wends its way through the legislative process, both sides have (of course) deployed their various bullet lists of talking points to the fiscal battlefield. One of the key strategic hills on this battlefield is the elimination of the deduction for state and local taxes (SALT).

I’ve seen Treasury Secretary Mnuchin deliver the main GOP talking point on SALT a couple of times (when he’s not mugging for the camera with a sheet of money). The argument is that it’s not fair for states with low or no income taxes to be subsidizing those spendthrift states with high taxes.

Sounds good to me, but here’s the standard rebuttal from the Democrats. They’ll point to New York state and say “Look! New York’s not being subsidized. Why, it’s a donor state! It sends more money to Washington than it gets back!”

I’m sure that’s true. However, I haven’t yet heard any GOP tax cutters rebut this argument by simply pointing out why it’s true. The reason New York pays so much tax to Washington is because many of the “millionaires and billionaires” (that the tax and spend left loves to hate) live there! It’s a result of the inherently unfair progressive tax system. You brought it on yourself New York…by electing the very people that imposed this on you!

End of rant! So now it’s time to…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
This entry was posted in Rants. Bookmark the permalink.

Comments are closed.