Democrats have been saying for years that we need tax increases, and that paying taxes is one of the greatest forms of patriotism. Now it looks like President Trump is going to put their beliefs to the test.
Trump’s new tax plan would hit blue states hardest, by eliminating the federal deductibility of state income and property taxes. That’s going to make it harder for blue states to maintain the high tax rates they’ve traditionally levied.
Right now, if you pay state property or income taxes, you can deduct them against your federal income taxes. In effect, that means that if you’re in a high federal bracket, your state taxes may be offset by that federal deduction to the tune of 40% or more.