Thursday, August 5, 2010

Nadler's Tax Equity Plan: Jerrold Nadler Raise Taxes on Red States

Rep. Jerrold Nadler (D-NY) and some of his cronies in the New York Caucus (who knew they had one) have devised a way to make Red states pay the taxes that the rich in states like New Jersey, Connecticut, California and New York would pay. Nadler claims these areas have a high-cost of living and need to be subsidized. He doens't mention the high cost of living in these state's with high state and local taxes, ridiculous restrictions on manufacturers and, of course, the costs to keep their unions going. The plan is known as Tax Equity - if you live in a Blue State that marched to the polls and voted for Obama, you get a tax cut.

Jerrold Nadler
There is no equity in this:
New York Representative Jerrold Nadler, who wants to exempt his own six-figure constituents from the tax hike he supports. Mr. Nadler’s bill would “require the IRS to adjust tax brackets proportionally in regions where the average cost of living is higher than the national average.”
In other words, the various tax brackets would apply to residents in certain regions at higher income levels versus other parts of the country. A family with an income of $50,000 or even $1 million in Manhattan would pay less federal income tax than a family with the same earnings in Omaha. The bill is called the Tax Equity Act, but a more accurate title would be the Blue State Tax Preference Act. 
Mark Hemingway, the writer of the Washington Examiner piece linked above muses about why it is so expensive to live in Manhattan, Boston and San Francisco:
...because of high state and local taxes, union work rules, and heavy business regulation that make it more expensive to produce, sell and buy things.
Co-sponsors of Nadler's Tax Equity are New York Democrats in the House: Tim Bishop, Carolyn McCarthy, Carolyn Maloney, Steve Israel, and Nita Lowey. From the Wall Street Journal:
Mr. Nadler also conveniently forgets that the federal tax code already subsidizes high-cost states through the deductibility of state and local income and property taxes.
Why should you in Shreveport, or I in Tulsa, have to make-up the difference for these progressively irresponsible states? Slightly off-topic: Do you think Nadler will find a way to opt-out of sharing his BMI?

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