But what's funnier is the way the people of the high tax states change their tune when it's their tax breaks at risk. From that same editorial, read and enjoy this.
The Senate bill, which at least preserves existing tax breaks for student loans, would eliminate the deduction for state and local taxes. Instead of college kids, Senate Republicans are thumbing their nose at blue states that pay for education and infrastructure out of their own funds. (Not coincidentally, states like Massachusetts, California, and Connecticut already contribute far more to federal coffers than they get back, because they’re more productive than states that refuse to invest in themselves.)But asking the "more productive" states to pay more in federal taxes, which is what eliminating those property and income or sales tax deductions will do is a bit much. Thus do people with lower incomes, living in less-heavily-taxed states, contribute to those investments Massachusetts, California, and Connecticut are making, or not, with Connecticut trying to become the next Illinois even now.
Then there's some reporting on the deleterious effect ending the tax-exempt status of those collegiate endowments on the local economy.
“These schools use endowments to build buildings, which employ our workers, and use it to subsidize student financial aid,” said Representative Michael Capuano, whose Cambridge district includes Harvard.What, taxing wealth less aggressively trickles down? Apparently that's not a discredited idea when it's tax benefits for Democratic hedge funds. But if you're a railroad or a printing company, you don't count.
“If Harvard has a smaller endowment, they are less likely to build a building. And that hurts my construction industry, that hurts my financial services industry,” Capuano said.