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.