Wednesday, October 19, 2005

Tax reform

I like what I'm hearing about proposals for tax reform:
A presidential advisory panel agreed to propose at least two broad changes to the federal income tax when it makes its final report to President Bush by Nov. 1, prompting protests from public officials and interest groups.

The first plan would simplify the current system by eliminating the deduction for state and local taxes, among other tax benefits. The second and more far-reaching proposal would move the tax code toward a modified tax on consumption.
Predictably this aroused the anger of politicians from high-tax states:
The suggestion that the state and local tax deduction might be tampered with rankled Sen. Charles E. Schumer (D-N.Y.). Given New York's relatively high taxes, the loss of the deduction would disproportionately hurt New Yorkers, compared with residents of states that have lower taxes.

"It is hard to conceive of something that could hurt New York more than the elimination of state and local tax deduction," he said in a statement. "It would impose a new $12 billion tax on the people of New York."
Sorry Chuck, but there is no reason the federal government should be forced to subsidize the high tax/spend policies of your home state. It's fans of higher taxes like yourself that created the problem, not the feds, and the people from low-tax states like Kansas shouldn't be forced to subsidize your penchant for big government. You want it? You pay for it.

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