Republican Tax cut bill could leave State’s, Cities and local government screwed…

The House bill would hurt middle class tax payers by limiting their deductions for state and local taxes…..

State and local lawmakers are afraid that because of the law?

There will be pressure on them to lower the very taxes that pay for services provided by state and local governments…

The House bill seems aimed at INCREASING taxes to be paid by middle class Americans…THAT is NOT a tax cut…

A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.

Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.

The proposed repeal of the state and local tax (SALT) deduction is part of an “assault on local governments” by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.

“My hope is that we look at being thoughtful about what we’re doing and not ram something through just to get something done before the year is out,” Kautz said of the plan being rushed through Congress by her own party.

In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government’s role at that level is limited.

Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.

The House tax bill just approved would eliminate the deduction for individuals and families of state and local income and sales tax, while capping property tax deductions at $10,000…..

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5 thoughts on “Republican Tax cut bill could leave State’s, Cities and local government screwed…”

  1. Two Prominent Conservative Republicans in Our Area voted no…Zeldin and King…King is a Hawk, and Zeldin is a conservative…but they both voted know because their constituents in affluent LI are going to get hurt by this…

  2. It is a shame that only 13 Republicans voted against his horrible bill. Even if we accept the GOP assumptions that almost everyone will get a tax cut, it still makes absolutely no sense whatsoever. The country already has a large annual deficit and an enormous national debt which has been growing every year (except for awhile under Clinton). In this bill there are no corresponding spending reductions; it is purely a plan that all economists (that I know of) say can only raise the deficit. Republicans are essentially copying the Greece strategy that “deficits don’t matter”, and that strategy didn’t work out for them either.

    The problem with deficit spending is that you have to pay back what you borrow. Sure, there are Chinese who for the time being will be willing to lend us money, but as any economist will tell you, in order to get more people to lend you money, you have to at some point raise the interest rate to attract those new buyers, but this has problematic long term effects, because it can easily become a vicious cycle.

    By any measure, the GOP tax plan is not conservative. It is foolish and reckless, and it makes no sense even if EVERYONE was to get a tax cut.

    1. Z?

      I’m with ya about the tax cut bill is a BAD THING….

      And NOT everybody will get a cut…

      Estimates are that the bill will cost the US Government $1.5 TRILLION in lost revenue and that almost half of middle class Americans will pay MORE taxes than less…

  3. Further,it is nothing more than the same old “trickle down”economics which the Republicans have practiced for years.That term doesn’t sound nice however,so the Republicans spend a great deal of time trying to counteract it with such things as referring to all wealthy people as “jobs creators,” a term invented by Frank Luntz , a Republican political operative ,who claims to be “nonpartisan.”

    The theory posits that by placing even more wealth in the hands of the already wealthy,they will start new enterprises or expand existing ones thereby employing more people and raising incomes.They refuse to concede the obvious,that many ,if not most ,wealthy people will simply pocket the new money for their own use.Worse yet,Republicans mostly refuse to even acknowledge any of this and simply claim that the wealthy aren’t the ones benefiting the most from these tax cuts even though the evidence is overwhelming that they will.

    Orrin Hatch,the other day, blasted Ohio Democratic Sen.Sherrod Brown by saying he was poor at one time(its unclear what that has to do either the here and now ,but as we all know living in the past is a standard Republican tactic)and he was tired of listening to the truism above.

    Unlike James, who claims the Republicans aren’t going to be able to get it together on the tax bills,I think they really have to pass something as the backlash from their donor class ,who wants their money ,and the Trump cult ,who believe they are going to get anything more than enough to take the family out for a nice meal once a year as a result of this horrendous giveaway to the rich , would be devastating to their electoral chances going forward .

    1. I agree with you Jack that the reason for this stupitity is just get something pasted….

      Even if it fucks a LOT of people….

      And for several reasons?

      Yea ….

      I do NOT think it will make it thru the Senate…

      If it does, though?

      It will only HELP Democrats next year…

      There ARE some GOPer’s who DO understand this…

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