Monday, November 06, 2017

Two Different Ways of Looking At The Situation

Shafting the blue states, or unshafting the red states?
That’s what Kevin Drum says at Mother Jones. Leftists are up in arms at the idea of taking away the federal tax deduction for state and local taxes and capping the home interest deduction at $500,000. Drum points out that this will hurt residents of blue states:
The Republican tax plan caps the mortgage interest deduction at $500,000. The Washington Post today has a lovely chart showing which states this hits most heavily...
Drum sees this only in political terms:
Has there ever been a tax proposal in recent history so obviously aimed at punishing voters of a particular political party? I sure don’t remember one.
But he is wrong in asserting that the Republican plan “screws” Democratic voters. Rather, current tax law is unfair to people who live in red, low-tax states. Why should they subsidize the excessive taxes that are imposed by the governments of blue states? Why should residents of South Dakota underwrite California’s state and local tax burden? The GOP plan doesn’t create unfairness, it corrects unfairness.
Lies, damned lies, and statistics :)

H.L. Mencken is credited with having said, "Democracy is the theory that the common people know what they want, and deserve to get it good and hard." Tax-loving people shouldn't object to paying more taxes.

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