A Hidden Tax Increase


While Trump and his minions call it the biggest tax cut in history, the budget proposal Republicans are railroading through Congress actually includes at least one hidden tax increase.

The proposed federal budget would eliminate deduction of local and state taxes from an individual’s taxable income, a big penalty to struggling middle-class families.

Of course, the proposal would be most painful for taxpayers in states that have their own income tax.  And as the tax rates vary from state to state, the effect would be greater in some states than in others.

As you can see by clicking on the Wikipedia map above, the rates range from zero in states like Florida, Texas and Tennessee to almost 10 percent in California, Oregon and Minnesota, with other industrialized states like New York only slightly lower.  (I’m sure you guessed it – the ax would fall hardest on states that usually vote Democrat.)

The real tax cuts in the proposed legislation go to the richest Amerians and to the big corporations.

The cuts would add trillions of dollars to the National Debt – despite Republican assurances that a mysterious economic boom would counter that effect.

They’re counting on a “trickle-down” phenomenon.

But this strategy has been tried repeatedly with disastrous consequences. The state of Kansas, for example, recently slashed corporate taxes and its economy collapsed.

More on the proposed budget

How it penalizes states