In Democrat-led state capitals, GOP tax reform push could scramble fiscal plans

[jayjayj 571]

https://www.politico.com/story/2017/11/19/gop-tax-reforms-state-capitals-democrats-247678

 

"We're going to have to re-evaluate everything" if a federal bill repealing the state and local tax deduction becomes law, New Jersey's Senate president says.

 

The Republican tax reform push in Washington is setting off budgetary alarm bells in high-tax states like New York, California and New Jersey, in the latest political skirmish to pit national Republicans against Democratic state and big-city leaders.

With Republicans intent on shrinking or repealing the state and local tax deduction, California officials are worried that the House-passed tax bill, and the emerging Senate measure, would force local governments to reduce taxes and make big cuts to schools and social services. In New York, where New York City and state revenues are heavily reliant on just a handful of wealthy tax filers, budget watchdogs fear federal tax changes could trigger the flight of those residents. And in New Jersey, plans for a new millionaire's tax, one of incoming Gov. Phil Murphy's biggest campaign promises, are already being reined in as the Democratic-led New Jersey Senate waits on the outcome of any federal tax plan.

 

"We're going to have to re-evaluate everything" if a federal bill repealing the state and local tax deduction becomes law, New Jersey Senate President Steve Sweeney said Wednesday in Atlantic City. Just days before, Sweeney had said he would make passage of a millionaires tax his chief priority in the new administration. "I'm just saying that what's happening in Washington is concerning the hell out of me,” he added.

Some national Republicans are reveling in the discomfort their plans are causing in Democratic-led states — and say that those governors and state assemblies should just lower their states’ taxes."

[Dashinka 24,793]

4 hours ago, jayjayj said:

https://www.politico.com/story/2017/11/19/gop-tax-reforms-state-capitals-democrats-247678

 

"We're going to have to re-evaluate everything" if a federal bill repealing the state and local tax deduction becomes law, New Jersey's Senate president says.

 

The Republican tax reform push in Washington is setting off budgetary alarm bells in high-tax states like New York, California and New Jersey, in the latest political skirmish to pit national Republicans against Democratic state and big-city leaders.

With Republicans intent on shrinking or repealing the state and local tax deduction, California officials are worried that the House-passed tax bill, and the emerging Senate measure, would force local governments to reduce taxes and make big cuts to schools and social services. In New York, where New York City and state revenues are heavily reliant on just a handful of wealthy tax filers, budget watchdogs fear federal tax changes could trigger the flight of those residents. And in New Jersey, plans for a new millionaire's tax, one of incoming Gov. Phil Murphy's biggest campaign promises, are already being reined in as the Democratic-led New Jersey Senate waits on the outcome of any federal tax plan.

 

"We're going to have to re-evaluate everything" if a federal bill repealing the state and local tax deduction becomes law, New Jersey Senate President Steve Sweeney said Wednesday in Atlantic City. Just days before, Sweeney had said he would make passage of a millionaires tax his chief priority in the new administration. "I'm just saying that what's happening in Washington is concerning the hell out of me,” he added.

Some national Republicans are reveling in the discomfort their plans are causing in Democratic-led states — and say that those governors and state assemblies should just lower their states’ taxes."

Don't state's learn that doing something like this (millionaire's tax) only causes people to leave.  Even Cuomo nixed this idea at least initially in NY.