Republicans embrace tax hike targeting Democratic states – WRAL.com
By STEPHEN OHLEMACHER, Associated Press
WASHINGTON Republicans aren't usually big on raising taxes, but they're really eager to eliminate the federal deduction for state and local taxes.
Why? A look at the states that benefit the most from the tax break helps explain it they are all Democratic strongholds. New York, Connecticut, New Jersey and California top the list of states where taxpayers get the biggest deductions. Not a single Republican-leaning state ranks in the top 10.
"Although Republicans usually recoil at any type of tax increase, cutting this tax break would almost be fun for them," said Martin Sullivan, chief economist for Tax Analysts. "It provides massively disproportionate deductions to high-tax states controlled by Democrats."
Proposals by House Republican leaders and President Donald Trump would repeal the tax break as part of their packages to overhaul the American tax code. But they are getting a lot of pushback from Republican lawmakers in Democratic-controlled states.
The standoff illustrates how hard it is for Congress to eliminate any popular tax break, even one that primarily benefits the ruling party's political opponents.
Almost 44 million claimed the deduction in 2014, according to IRS statistics. That's nearly every taxpayer who itemizes deductions, a little less than 30 percent of all taxpayers. Sullivan analyzed which states would be hit hardest by repealing the tax deduction. The Associated Press did a similar analysis and came to the same conclusion.
Nationally, the average deduction is about $11,800, but it is much bigger in many blue states. New York is tops with an average deduction of more than $21,000. Connecticut is next at $18,900, followed by New Jersey at $17,200 and California at $17,100.
These are states with high property values, high costs of living, high incomes and relatively high state and local taxes compared to other states. They are also states President Donald Trump lost in last year's election. Though the president is from New York, he lost the state to Democrat Hillary Clinton by 22 percentage points.
The highest-ranked state won by Trump is Wisconsin, which came in at No. 13, with an average deduction of $11,300.
At the bottom is Alaska, with an average deduction of $4,800. It is followed by Tennessee and Alabama. Among the bottom 10 states, Nevada and New Mexico are the only ones won by Clinton.
The deduction allows taxpayers to write off real estate taxes, and state and local income taxes. If your state doesn't have an income tax, you can deduct sales taxes. The deduction is heavily weighted to families with high incomes. Seventy-five percent of the benefits went to families making more than $100,000.
Rep. Kevin Brady, R-Texas, says eliminating a tax break that helps some people will help lawmakers lower tax rates for everyone.
"We're proposing a much simpler code with lower rates where everyone gets help whether they are paying their state and local taxes or they are putting their kids in college," said Brady, who chairs the tax-writing House Ways and Means Committee.
Eliminating the tax break would raise $1.3 trillion over the next decade, according to the nonpartisan Tax Policy Center, money that could be used to help pay for lower income tax rates.
The House Republican plan would eliminate most itemized deductions while nearly doubling the standard deduction, to $24,000 for married couples. Notably, the plan would keep the deductions for mortgage interest and charitable contributions.
The White House and congressional Republicans have been privately negotiating their tax package for weeks, with no public sign that they're near a consensus. Democrats have been excluded from the talks.
Some Republicans claim the deduction for state and local taxes encourages states to spend and tax more because the taxes can be deducted at the federal level. Some also complain that the deduction forces low-tax Republican states to subsidize high taxes in Democratic states.
However, many blue-state Republicans don't buy those arguments. They note that most high-cost blue states send more tax dollars to Washington than they receive in federal benefits. And who benefits from those tax dollars? Low-cost red states where incomes are generally lower.
"If we're going to have a discussion about who is subsidizing whom, it must be across the board. It can't be just one provision," said Rep. Leonard Lance, R-N.J.
Lance is teaming up with Rep. Bill Pascrell, Jr., D-N.J., in an effort to maintain the tax break.
"In New Jersey, (the deduction) encourages very strong public schools," Lance said. "I want to maintain strong public schools. For there to be strong public schools, there has to be adequate spending."
Rep. Tom MacArthur, R-N.J., said he brings up the deduction every time he sees Treasury Secretary Steven Mnuchin, one of Trump's top advisers on taxes.
"The minute he walked into the room and saw me he pointed and said, 'I know, state and local tax deduction,'" MacArthur said.
"I know the White House is committed to bringing taxes down for everybody," MacArthur said. "But people in high-tax states under the plan they're proposing would basically be at a break-even while everyone else in the county enjoys tax relief. That's not fair."
___
Follow Stephen Ohlemacher on Twitter at http://twitter.com/stephenatap
Continue reading here:
Republicans embrace tax hike targeting Democratic states - WRAL.com
- Republicans Escalate Their War on Americas Cities - The American Prospect - September 15th, 2025 [September 15th, 2025]
- Capitol agenda: Republicans to reveal funding bill, testing Democrats in shutdown showdown - Politico - September 15th, 2025 [September 15th, 2025]
- Republicans admit its inevitable Congress will force Trump to release the Epstein files: report - The Independent - September 15th, 2025 [September 15th, 2025]
- Two House Republicans oppose Johnsons spending plan amid conservative grumbling - Politico - September 15th, 2025 [September 15th, 2025]
- Republicans are using an arcane oversight rule to permanently dismantle federal land protections - Grist.org - September 15th, 2025 [September 15th, 2025]
- Kansas Republicans say the state will lose $10.4 million this week. Will it happen? - thebeaconnews.org - September 15th, 2025 [September 15th, 2025]
- Republicans Must Stand Their Ground On Enhanced Obamacare Subsidies - Forbes - September 15th, 2025 [September 15th, 2025]
- Republicans from across Tennessee Valley gather in Huntsville to honor Charlie Kirk - 1819 News - September 15th, 2025 [September 15th, 2025]
- California Republicans pushing to get voter ID initiative onto 2026 ballot - Los Angeles Daily News - September 15th, 2025 [September 15th, 2025]
- Penn College Republicans hosts vigil for assassinated conservative activist Charlie Kirk - The Daily Pennsylvanian - September 15th, 2025 [September 15th, 2025]
- Daviess County Republicans come together to Stand for Peace after Charlie Kirk assassination - 14 News - September 15th, 2025 [September 15th, 2025]
- Missouri approves Trump-supported redistricting plan that may benefit Republicans - NPR - September 15th, 2025 [September 15th, 2025]
- Republicans admit its inevitable Congress will force Trump to release the Epstein files: report - yahoo.com - September 15th, 2025 [September 15th, 2025]
- Wall Street Journal Says This Failure By Republicans Will Come Back To Haunt Them - HuffPost - September 15th, 2025 [September 15th, 2025]
- Republicans are trying to raise the bar for voters to amend their state constitutions - NBC News - September 13th, 2025 [September 13th, 2025]
- North Carolina Republicans blame Democrats for 'woke' policies they say contributed to Charlotte light-rail stabbing - ABC News - September 13th, 2025 [September 13th, 2025]
- Senate Republicans trigger 'nuclear option,' changing rules to speed up Trump nominees - NBC News - September 13th, 2025 [September 13th, 2025]
- Missouri approves Trump-supported redistricting plan that may benefit Republicans - KUOW - September 13th, 2025 [September 13th, 2025]
- Senate Republicans turn to nuclear option to speed confirmation of Trump nominees - Oregon Public Broadcasting - OPB - September 13th, 2025 [September 13th, 2025]
- Missouri Republicans approve redistricting that gives GOP additional seat in Congress - The Guardian - September 13th, 2025 [September 13th, 2025]
- Cosplaying as D.C. Council, House Republicans advance dozen-plus bills targeting city they dont represent - The 51st - September 13th, 2025 [September 13th, 2025]
- Tyler Robinsons grandmother says their entire family are Republicans: I dont know a single Democrat - Newswav - September 13th, 2025 [September 13th, 2025]
- Republicans Champion Innovative and Affordable Housing at HUD Showcase on the National Mall - House Republicans (.gov) - September 13th, 2025 [September 13th, 2025]
- Charlie Kirk told young Republicans to speak up. Now they run the White House. - Politico - September 13th, 2025 [September 13th, 2025]
- Surveys Show Republicans and Democrats Are Moving Further Apart - The Wall Street Journal - September 11th, 2025 [September 11th, 2025]
- Democrats and Republicans disapprove of Medicare, Medicaid cuts, Northeastern research finds - Northeastern Global News - September 11th, 2025 [September 11th, 2025]
- US Senate Republicans narrowly reject Schumer bid to force vote on Epstein files - Reuters - September 11th, 2025 [September 11th, 2025]
- Republicans Use Funding Bill to Dismantle Our Health Care System and Attack Public Education - House.gov - September 11th, 2025 [September 11th, 2025]
- Don't call it the Big Beautiful Bill. Kansas Republicans in on rebrand - The Topeka Capital-Journal - September 11th, 2025 [September 11th, 2025]
- Fellow Republicans, friends remember Charlie Kirk, shot and killed while speaking at university event in Utah - CBS News - September 11th, 2025 [September 11th, 2025]
- Maine Republicans urge Trump to revoke offshore wind leases, citing fishing industry risks - WGME - September 11th, 2025 [September 11th, 2025]
- Assembly Republicans announce scattered package of education bills and task forces - Wisconsin Examiner - September 11th, 2025 [September 11th, 2025]
- Charlie Kirks killing created a powder keg. Why are Republicans waving matches around? - San Francisco Chronicle - September 11th, 2025 [September 11th, 2025]
- Republicans Call on Evers to Keep Klein Hall Open - WEAU - September 11th, 2025 [September 11th, 2025]
- Missouri House Set to Vote on Map That Boosts Republicans - The New York Times - September 9th, 2025 [September 9th, 2025]
- Republicans in Congress are eager for Trump to expand his use of the military on US soil - AP News - September 9th, 2025 [September 9th, 2025]
- Will Republicans in Congress finally stand up to Trump? - The Guardian - September 9th, 2025 [September 9th, 2025]
- Why Republicans are avoiding their favorite target in Californias redistricting fight - CalMatters - September 9th, 2025 [September 9th, 2025]
- Republicans dismiss Epstein letter seemingly signed by Trump: Not his signature - KWTX - September 9th, 2025 [September 9th, 2025]
- California Republicans energized by their opposition to Newsom's redistricting special election - Los Angeles Times - September 9th, 2025 [September 9th, 2025]
- Congressional Republicans Are Poised to Slash Millions from Student-Support Programs - The Chronicle of Higher Education - September 9th, 2025 [September 9th, 2025]
- California Republicans say redistricting battle should play out in the state, not Congress - Times of San Diego - September 9th, 2025 [September 9th, 2025]
- Republicans move to create mandatory sentences and cash bail in DC - Straight Arrow News - September 9th, 2025 [September 9th, 2025]
- Republicans grapple with internal divide over Obamacare credits - Semafor - September 9th, 2025 [September 9th, 2025]
- Senate Republicans prepare to 'go nuclear.' What does that mean? - Deseret News - September 9th, 2025 [September 9th, 2025]
- Republicans in Congress are eager for Donald Trump to expand his use of the military on U.S. soil - Inquirer.com - September 9th, 2025 [September 9th, 2025]
- Missouri House Republicans give initial approval to initiative petition reform - ABC17NEWS - September 9th, 2025 [September 9th, 2025]
- Morning Digest: Kansas Republicans want to gerrymander. They have a few problems. - The Downballot - September 9th, 2025 [September 9th, 2025]
- House Republicans Vote to Affirm House Oversight Committee Investigation into Epstein Files - Congressman Mike Johnson (.gov) - September 6th, 2025 [September 6th, 2025]
- The monarchy must win over teenage patriotic republicans - The Times - September 6th, 2025 [September 6th, 2025]
- House Republicans split with Trump team over 'very frustrating' funding fight as shutdown looms - Fox News - September 6th, 2025 [September 6th, 2025]
- Even some Republicans are growing weary of RFK Jr. but are they willing to act? - MSNBC News - September 6th, 2025 [September 6th, 2025]
- Republicans strategize about upcoming redistricting special election at annual convention - Daily Breeze - September 6th, 2025 [September 6th, 2025]
- Its bad politics: Why California Republicans are avoiding Donald Trump and muscling in behind Arnold Schwarzenegger - Politico - September 6th, 2025 [September 6th, 2025]
- Are Republicans socialist now? Trump's Intel deal overreaches on government control. | Opinion - USA Today - September 6th, 2025 [September 6th, 2025]
- Republicans move to lift drilling and mining restrictions in Western states - AP News - September 6th, 2025 [September 6th, 2025]
- Why are Republicans putting profits over veterans? - The Edwardsville Intelligencer - September 6th, 2025 [September 6th, 2025]
- Is housing the issue Democrats and Republicans in Congress can agree on? - The Mercury News - September 6th, 2025 [September 6th, 2025]
- House Republicans Push New Coal Bills, but Critics Say the Industrys Decline Cant Be Reversed - Inside Climate News - September 6th, 2025 [September 6th, 2025]
- Exclusive / Republicans to allow batches of confirmation votes - Semafor - September 6th, 2025 [September 6th, 2025]
- House Republicans approve new panel to uncover all the facts of January 6 attack - The Guardian - September 5th, 2025 [September 5th, 2025]
- House Republicans Vote to Raise Energy Costs and Weaken National Security in Extreme Energy and Water Funding Bill - House.gov - September 5th, 2025 [September 5th, 2025]
- If Walz calls special session, here's what Republicans will prioritize - CBS News - September 5th, 2025 [September 5th, 2025]
- Republicans move to lift drilling and mining restrictions in Montana, other Western states - Montana Free Press - September 5th, 2025 [September 5th, 2025]
- E&E News: Republicans praise bill blocking Snake River dam research - POLITICO Pro - September 5th, 2025 [September 5th, 2025]
- Wisconsin State Senate Democratic Committee: In case you missed it: Wisconsin Republicans are turning their backs on our veterans - WisPolitics - September 5th, 2025 [September 5th, 2025]
- House Republicans form new subcommittee to probe Jan. 6 - The Washington Post - September 5th, 2025 [September 5th, 2025]
- Dont Assume All Republicans Are The Same in Race for Greenwich BET - CT Examiner - September 5th, 2025 [September 5th, 2025]
- We asked Florida Republicans where they stand on ending vaccine mandates - Miami Herald - September 5th, 2025 [September 5th, 2025]
- House Republicans Slash $766M in Energy and Water Funding - The Well News - September 5th, 2025 [September 5th, 2025]
- Senators, including Republicans, grill Kennedy over vaccine policies and CDC chaos - Anchorage Daily News - September 5th, 2025 [September 5th, 2025]
- Latest funding cuts spark pushback from Republicans: Will they confront Trump? - Syracuse.com - September 5th, 2025 [September 5th, 2025]
- Connecticuts top Republicans endorse Ryan Fazio in his campaign for governor - WTNH.com - September 5th, 2025 [September 5th, 2025]
- Top Trump political advisers huddle with House Republicans on rebranding of Big Beautiful Bill - Fox News - September 3rd, 2025 [September 3rd, 2025]
- House Republicans break from Trump over NIH funding - Axios - September 3rd, 2025 [September 3rd, 2025]
- Only two more Republicans needed to force vote on Epstein files release, bill co-sponsor says live - The Guardian - September 3rd, 2025 [September 3rd, 2025]
- Senate Republicans avoid clash with Trump over Fed firing - Politico - September 3rd, 2025 [September 3rd, 2025]
- Full List of Republicans Signing Discharge Petition to Release Epstein Files - Newsweek - September 3rd, 2025 [September 3rd, 2025]
- Under legal fire, Fulton Co. commissioners to decide whether to seat Republicans on elections board - Atlanta News First - September 3rd, 2025 [September 3rd, 2025]
- Missouri Republicans are trying to split KC into 3 congressional districts - Axios - September 3rd, 2025 [September 3rd, 2025]