LAT: Proposal Would Hit Blue St. Taxpayers (st., local tax deduction)

Proposal Would Hit Blue State Taxpayers
Some conservatives want to kill the U.S. deduction for state and local taxes. Californians and New Yorkers would feel the strongest sting.

By Warren Vieth, Times Staff Writer


WASHINGTON — As President Bush lays the groundwork for a possible overhaul of the U.S. tax code, one option under consideration would deal its biggest financial blow to citizens of blue states such as California and New York.

Some conservative activists are urging the Bush administration to scrap the federal deduction for state and local taxes as part of a broader plan to revamp the nation's tax system.

Although the proposal would hurt some taxpayers in nearly every state, it would hit hardest in states with higher-than-average income levels and bigger-than-average state and local tax burdens. High on the list are a number of blue states — those that were carried by Democrat Sen. John F. Kerry in last month's presidential election.

Taxpayers in California and New York, for example, which have top state income tax rates of 9.3% and 6.5% respectively, would be highly affected; residents of Florida and Texas, which have no state income taxes, much less so....


http://www.latimes.com/news/nationworld/nation/la-na-tax5dec05,0,5120155.story?coll=la-home-headlines

property taxes, too.

That would hurt many people in red states as well. It would hurt farmers a lot, either way. * could lose quite a bit of his rural base this if he does this.

The shrub administration is no friend to small and family farms. Their so called Farm friendly ideas are all about big agribusiness.

So those small farmers are already voting against their economic interests. One more insult isn't going to make a difference to them.

Only state and local income taxes, I also believe there is a write off for sales tax as well??

eom

What other charming punishments will they mete out, happily encouraged by our Republican governors?

Aaaargh, why didn't they say what those tax changes are. NO capital gains, dividends or interest tax. Tax shift to the working people.

And I tell you what, if they pull this shit, I'm not paying anymore red state welfare tax. I'm self-employed and pay my own taxes, fuck 'em, they can lock my ass up.

You guys will come see me, right??? :)

From the article:

Blue, red division

How state and local tax deductions divide among Bush and Kerry states:

Bush 33%

Kerry 67%

(Amounts claimed under the deduction in hundreds of thousands rounded:)

* No state income tax

Us "blue staters" setting a bad example of actually showing the rest of the nation how a sensisible tax policy can actually help people.

And you've got an ugly case of federalism. The recent bill that passed allowing people in states with no income tax to deduct their sales tax from federal returns disproportionately assists well-off red-staters. Great way to try to force other states into scrappyin income tax and moving to a sales tax.

I'd love to see the taxpayers of NY and Cali - and others - organize themselves into a full out federal tax protest. Put in the max exemptions on the W-2 and file their protest papers April 15.

Anyone else think this looks like reconstruction in reverse?

as a part of a larger tax package put forth by our Republican governor. Alabama was scorned for voting it down. Interesting to see it come back as a nation-wide proposal.

We know that the blue states generally pay more in federal taxes than they get back in benefits.

As things are now, it seems it would be possible for the blue states to raise their own taxes, thereby lowering the federal tax payments of their residents and keeping more tax money in-state.

This Bush plan would, at the very least, prevent that from happening. It could even be part of a systematic attempt to increasingly drain off the wealth of the blue states for the benefit of the red states.

I would say, keep your eyes out for possible other signs, like closings of military bases and cuts in federal funding of scientific research that disproportionately target the blue states.

If this is really happening, and if we can prove that it is, it might be a way to target Republican congresspersons in states like New York and California. At some point, all these blue state Pubbies are going to have to choose between loyalty to the Bush regime and loyalty to their constituents, and this would be as good a point as any to start applying the pressure.

Gonna take it?