Ryan blasts states that send bil­lions to fed­eral govern­ment

Starkville Daily News - - AROUND TOWN - By MARCY GOR­DON and KEN THOMAS As­so­ci­ated Press

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.”

By Su­san Walsh, AP) (Photo

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.

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