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Tax Blues, and Hear Them Whine
December 5, 2017
by William P. Meyers

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Tax bill is a rare chance to view Democratic and Republican hypocrisy

The new federal tax bill final details will be worked out between the Senate and the House, and if approved by both and signed by President Donald Trump could become law before the end of 2017.

More than likely the new tax laws will increase the federal deficit. Suddenly Republicans don't care about the deficit, as long as the money is going to themselves. Suddenly a few Democrats, who have argued since Franklin Delano Roosevelt's presidency that deficits are good, are saying that deficits are bad. Let's be clear: for Democrats, Democratic deficits are good, and Republican deficits are bad.

I'll address the deficits later, but first consider the whining of rich Democrats in states like New York, California, and New Jersey.

First, most of these Democrats don't think they are rich. They think that owning a home worth over a million bucks, and having an annual income of perhaps as little as $150,000 per year, makes them at best middle class, and possibly poor, if not quite poor enough to qualify for food stamps.

In my view you don't have to be as rich as Bill Gates to be rich. In my view anyone who works full time at more than twice the minimum wage is doing just fine. At five times the minimum wage you are fu--ing rich. Which on a national level is about $75,000 per year, for a single person. Let's say $150,000 per year for a family.

The basic argument of the rich Democrats in New York, New Jersey, California, and other high-tax jurisdictions, is that high state and local taxes are good because the state used them to create social goods that everyone enjoys. The taxes can be used for good public schools and universities, good roads and other infrastructure, and decent pay for public workers. All other things (than taxes) being equal, of course most people want to live in California instead of Alabama or Texas.

These blue states have very high, but progressive, income taxes (I know, I have lived in California and New York State). It is kinda nice having rich folks who don't complain too much about about paying more taxes in the Blue states than they would if they lived in the Red states.

Only it turns out, it has been a bit of a scam. The high income and real estate and even sales taxes of California have been simply deducted from the rich Blues federal taxes. Well, it is a bit more complicated. I've never in my life had enough deductions to fill out a Schedule A rather than just taking the standard deduction, but the basic idea is clear: high local taxes give you a break on your federal income taxes. Add that to the break letting rich people deduct their interest on their mortgages on their mansions, and bam, taxes are back on the backs of the workers and lower middle class. Only the illusion of progressive values remains.

Suddenly the rich blue liberals are naked, and they are whining. I am not saying the Republican tax plan is a good one, but thank you for exposing the rich blues to the light of day.

Here's what I want to hear from Democratic Party politicians, leaders, and rich liberal voters:

We don't need your frigin' federal tax deductions. We are proud to pay blue state taxes. We are proud to have better roads and schools and safety nets than our badly-run, red-state, Republican counter parts. We can get by just fine on our income that still puts us among the top productive people in the nation. Our hourly rates of pay are high enough, we can just work a couple of weekends to make up the difference.

Can you dig it? Forward this essay to your friends, and particularly to California, New York and New Jersey members of Congress.

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