It's tax month boys and girls! I thought I knew as much as our federal tax programs as anyone. I was wrong.
As you wind your way your way through your tax prep, when you come to deductions, you come to that line that allows you to deduct from your federal taxes, all state and local taxes that you paid in to your state of residence. Sounds great, right? Well, no.
This past week I just read an exhaustive article in the L.A. Times which decries Congressional Republicans' plan to eliminate the deduction for state and local taxes. And when I looked at the federal deduction California enjoys, I truly wished I'd been wearing Depends! $101 billion dollars every year to give California taxpayers a break on their funding of wasteful liberal spending, much of it that allows illegal Mexicans to prosper.
I gave it a lot of thought and am now more than willing to give up my local and state tax deduction. If those deductions are allowing California and New York to fund their sanctuary cities I want to end it. And I no longer want to fund San Francisco's mandate that their municipal residents conform to bizarre and expensive climate change and environmental laws. And, as one can see in the chart above, California and New York, America's liberal bastions, suck most of our federal tax dollars back to their states....to fund their liberal agenda.
The Congressional Budget Office reported that the local and state tax deductions accounts for $1.3 trillion dollars each year, money that might better be used for infrastructure projects or, oh hell, paying down the national debt.
And, as with any tax deduction, the biggest local and state tax deductions favor those rich folks up in Silicon Valley and the liberal Hollywood types. As Republicans work on tax reform I'm hoping that, as a minimum, they limited state and local tax deductions for those who make less than $75,000 or so a year. With the two biggest hogs, California and New York, putting a stop to the federal piggy bank would accomplish a couple of things. It would force those two states to pay for their own wasteful liberal programs, and in California's case it would stop that state from enlarging the welcome mat for millions of illegal Mexican invaders.
If the liberal states want to fund their socialist policies let them do it without the tax dollars of us in the other 48 states. It's far past time for California stop sucking us dry to advance their liberal agenda. Maybe, just maybe, California taxpayers will revolt when they no longer can write off their state masters' massive spending programs.