Ryan blasts states that send billions to federal government
WASHINGTON — The top House Republican on Thursday blasted high-tax states that deliver billions to the federal government as he faced a backlash from rank-and-file GOP lawmakers over a sweeping tax-cut proposal.
Speaker Paul Ryan went on the offensive against high-tax states like California, New York and New Jersey, even though disgruntled GOP lawmakers from those states need to be brought on board to support the $6 trillion tax overhaul. The Republican lawmakers from high-tax states oppose the plan’s proposal to repeal the popular federal deduction for state and local taxes.
But Ryan contended the rest of the country is “propping up profligate, big-government states” that levy high taxes on their residents and spend recklessly.
“States that got their act together are paying for states that didn’t,” the Wisconsin lawmaker said at an appearance at the conservative Heritage Foundation.
In fact, California, New York and New Jersey send many billions more in taxes to Washington than they get back in federal spending, new data show. Divided by total state residents, New York gets back 81 cents for every $1 it pays in, +ons.
Rep. Chris Collins, RN.Y., a Trump ally, warned Wednesday that the affected states would need some “accommodations” to go along with eliminating the deduction for state and local taxes paid, possibly a cap on how much could be deducted.
Some opponents contend that repealing the deductions would subject people to being taxed twice and would amount to a federal revenue grab on the backs of homeowners who pay property taxes. And governors like New York Democrat Andrew Cuomo, a potential 2020 presidential candidate, have rallied against the change.
“There will be a transfer of wealth of over a trillion dollars to the federal coffers,” said Matt Chase, executive director of the National Association of Counties.
Randi Weingarten, president of the American Federation of Teachers, said eliminating the deduction would not only “devastate funding for public schools, infrastructure, law enforcement and other vital services” but also boost taxes on the middle class. “For what? Tax cuts for the wealthy.”
House Speaker Paul Ryan of Wis., holds up a copy of a proposed “simple tax” postcard while speaking at the Heritage Foundation in Washington, Thursday, Oct. 12, 2017.