I note (with a certain amount of schadenfreude) that elements of the Republican Party are moving ahead with a simplified tax plan that would eliminate federal tax credits for state taxes. The New York Post reports:
House Republicans are moving ahead with a plan to eliminate deductions for state and local taxes in the new federal tax code — a move New York officials have warned would be “devastating” to the state.
The chairman of the House Ways and Means Committee, Kevin Brady (R-Texas), said Tuesday that he’s working closely with the White House on a plan that to create three federal tax brackets — 12, 25 and 33 percent.
But the sweeping change would also end the popular deduction for state and local taxes.
“We are proposing a change,” Brady said.
“Rather than keep Washington taxes high and have just a few get relief from state and local taxes we’re proposing to lower taxes for everybody at every income level so they can use those dollars for what’s important to them, which may include state and local taxes.”
Brady added: “No longer will Washington punish or reward you based on how much you earn or where you choose to live.”
. . .
The goal, Brady said, is to make the tax code so fair and simple that Americans can file their taxes on a postcard.
There's more at the link.
This would bring home to all Americans how efficiently their home states are governed. Right now, high-taxing, high-spending states can mask their activities to a certain extent, because their taxpayers are sheltered from the local tax burden by deducting it from their federal taxes. If that were no longer an option, every taxpayer would know precisely how much their state politicians are costing them - because they'd be paying it on top of, over and above, their federal taxes.
The odds are pretty good that those living in tax-and-spend states such as New York, California, etc. would be very, very unhappy to experience the full magnitude of those states' punitive taxes. They'd probably launch loud, vociferous campaigns to change their politicians' habits - or change their politicians altogether.
I believe in holding politicians' feet to the fire of public opinion. This measure promises to do just that. Count me in favor.