1/11 Thank you @GovNedLamont for fighting to correct this double taxation of State and Local Taxes (SALT) that was punitively imposed by the GOP on “Blue” States in a $1.2 Trillion #GOPTaxScam
2/11 As the Governors’ letter mentions, President Abraham Lincoln was clear about double taxation when he introduced the Revenue Act of 1862.
Sen Daniel Patrick Moynihan eloquently references this fact in his 1986 speech to President Reagan about this very issue.
3/11 Senator Moynihan successfully argued that elimination of SALT-deductions constitutes “double taxation” and breeches the contract established by President Lincoln in 1862. assets.documentcloud.org/documents/4325…
4/11 But the GOP claims that these “wealthy” blue States can afford it because (falsely) Red States are somehow “subsidizing” these high tax States.
5/11 In reality, the States represented in this letter produce roughly 40% of the GDP for the entire nation, and are massive GIVERS to the Federal Gov - effectively subsidizing low tax Red States.
6/11 it’s worse since no State is actually Red or Blue, so the GOP effectively threw half the population of these States under the bus because they tend to vote for Democratic Presidents and Senators. What happened to Grover Norquist’s precious Tax Pledge? atr.org/about-the-pled…
7/11 I guess it’s ok to raise taxes (even on Republicans) if they live in a Blue State? And why are Red States so fiercely opposed to Federal spending anyway if they are largely the beneficiaries of that spending? According to the Harvard Business Review, that’s more complicated.
8/11 In a paper recently published in American Politics Research, HBR documents and analyzes the phenomenon, which they call “the federal spending paradox”. hbr.org/2017/09/resear…
9/11 ...and yes, the phenomenon appears to have racial undertones. White people don’t mind supporting poor white people in Appalachia, but the grotesque and factually inaccurate stereotypes of POC being “lazy” seems to drive deep resentment for white people of both parties.
10/11 Since Blue States have more heavily populated cities, and POC are more heavily represented in urban areas, it’s easy for the TAKERS in Red States to be angry at the very people paying their tab in Blue States. In fact, racial resentment was far more powerful predicting...
11/11 ...opposition to federal spending than economic self-interest, e.g., it was four times stronger than income.
So whether you vote R or D, in whichever State you live, you should be deeply opposed to double-taxation and caps on SALT deductions (unless you’re a racist).
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