Monday, December 27, 2004
Bush Plan Could Imperil Tax Write-Off for New York
I wonder if the federal tax deduction for state and local income taxes is included in the amount of money that NY says it overpays the gov't?
The money quotes are at the end of the article.
"New York officials also worry that the change could lead taxpayers, newly burdened with the added expense of lost deductions, to demand lower local and state taxes.
For some, that is just the point. "If you believe, as I do, that the state and local deductions encourage higher spending in states," said Bruce Bartlett, a domestic policy adviser to Ronald Reagan and a treasury official for the first President Bush, "then abolishing the deduction will help bring this spending down and will also cause people to demand lower taxation."
So the federal gov't is subsidizing the higher spending in NY. This leads me to the question above.
I wonder if the federal tax deduction for state and local income taxes is included in the amount of money that NY says it overpays the gov't?
The money quotes are at the end of the article.
"New York officials also worry that the change could lead taxpayers, newly burdened with the added expense of lost deductions, to demand lower local and state taxes.
For some, that is just the point. "If you believe, as I do, that the state and local deductions encourage higher spending in states," said Bruce Bartlett, a domestic policy adviser to Ronald Reagan and a treasury official for the first President Bush, "then abolishing the deduction will help bring this spending down and will also cause people to demand lower taxation."
So the federal gov't is subsidizing the higher spending in NY. This leads me to the question above.
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