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GOP Designs Tax Hike on Rich That Dems Will Hate – National Review

January 30
15:12 2017

If you have spent much time in the more rarefied corners of California, one thing will be obvious: The lifestyle associated with urban progressivism can be very comfortable — if you can afford it. If you can’t — well, the view from Santa Monica is very different from the view from Friant, just as the view from Tribeca is very different from the view from Elmira in upstate New York. Progressivism in the United States used to be a school of political action, but today it is mainly a highly refined lifestyle — one that Republicans may be on the verge of making a little more expensive.

It’s time for a blue-state tax hike.

Congressional Republicans and the Trump administration will disagree about many things, but it is rare to find a Republican of almost any description who will turn his nose up at a tax cut of almost any description. As Robert Novak put it: “God put the Republican Party on earth to cut taxes. If they don’t do that, they have no useful function.” And tax cuts are coming. But there are two proposals in circulation that would constitute significant tax increases — tax increases that would fall most heavily on upper-income Americans in high-tax progressive states such as California and New York. The first is a proposal to reduce or eliminate the mortgage-interest deduction, a tax subsidy that makes having a big mortgage on an expensive house relatively attractive to affluent households; the second is to reduce or eliminate the deduction for state income taxes, a provision that takes some of the sting out of living in a high-tax jurisdiction such as New York City (which has both state and local income taxes) or California, home to the nation’s highest state-tax burden.

Continue Reading At National Review

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