Behind the scenes deals are taking place in congress in attempt to allow insolvent states like NJ, NY, CA, and Il to continue to deduct their hefty state taxes on the potential tax reform bill.
These states have over-taxed their (tax-paying) citizens in order to fund exorbitant social programs. The current deduction process passes the burden from the insolvent states to those who are fiscally responsible. In other words, the solvent states, some of whom do not even have state income taxes, are forced to subsidize those who spend money they don’t have.
Supporters of the proposed tax reform are asking for citizens to call congress and demand that House Speaker, Paul Ryan and Rep. Kevin Brady, head of House Ways and Means Committee stop all back room deals that would allow the insolvent states to continue to deduct their oversized tax burdens. Historically, one of the byproducts of tax cuts is increased revenue. Subsidizing irresponsible states only reduces the tax revenue amount, and with it the potential for the budget to actually be balanced.
Fix the problem New Jersey, stop grubbing money off others that are more responsible. Get your own house in order. It is unfair to all the better run states!
Insolvent states such as New Jersey should look to the actions of Rudy Giuliani to fix their own problems. Giulani fixed the problem of New York City. He did not continue the failures of the previous Democrat leadership. It was unfair that the federal government used money from solvent states to bail out one of the country’s largest cities.
When he was elected mayor of New York City, there was not enough economic growth to pay for all of its excesses.
The rest of the country’s tax payers had to pay for the cities failed leadership.
Giuliani increased revenue to the city NOT by raising taxes.
In fact, he did quite the opposite. He lowered taxes on business, which were incentivized to create more jobs. Additional jobs in the city resulted in more taxes paid to the city coffers in the form of local and sales taxes.
Giuliani rightly knew the city had to become safer to bring back business and tourists. The point is that New York City’s Rudy Giuliani fixed the issues, by NOT doing what had already been done. He simply did not continue the failed practices of the Democrat leadership.
The issue at hand for the country could be compared to a city block that has 50 houses on it. All the houses are worth about the same and the tax rates are about equal and everyone on the street makes the same income.
Five houses on the block mismanage their finances, so they cannot pay all their property taxes. Thus the 45 houses that manage their money well, have to pay extra taxes to bail out the less responsible, (not lower income people rather less responsible people.)
NJ is a similar example. Our property taxes are way too high. So instead of fixing the problem what did we do? We elected mostly Democrats who did not fix the problem, choosing instead to just kick the can down the road and grub off more reasonable leaders. They steal money from the taxpayers of states that can run their states better the NJ. For example, South Carolina’s property taxes are much lower, yet the state operates much more so within its means.
Fix the problem NJ. Stop grubbing money off others states that elect more responsible leaders. Emulate the more responsible states don’t discriminate against them.