"We can't get blue state Republicans [in the House to support tax reform] because of the state and local fix."
"Screw this up now and we will have (President) Bernie Sanders' tax plan and the economic 'growth' of Venezuela."
https://dogbrothers.com/phpBB2/index.php?topic=1791.msg107152#msg107152"The Republican bills attack two of the three largest “tax expenditures,” by limiting or eliminating the deductions for home mortgage interest and state and local taxes. The dollar benefits of those deductions are hugely concentrated on “wealthy Americans,” especially in high-tax, high-housing-cost states where people vote heavily Democratic. These progressive changes could only be made by Republicans, who have few House members and zero senators from such constituencies." - Michael Barone
https://dogbrothers.com/phpBB2/index.php?topic=1791.750Not mentioned in the debate was that neglect of those "few [Republican] House members" in high tax states would swing the power in Washington from R to D.
Look at the income and tax data in the districts that flipped. Examples:
Virginia's 2nd: Democrat Elaine Luria beat out incumbent Republican Scott Taylor.
Virginia's 7th: Democrat Abigail Spanberger beat incumbent Republican Dave Brat.
Virginia's 10th: Democrat Jennifer Wexton unseated incumbent Republican Rep. Barbara Comstock.
New Jersey's 11th: Democrat Mikie Sherrill won against Republican Jay Webber.
New Jersey's 7th: Democrat Tom Malinowski ousted incumbent Republican Leonard Lance
New Jersey's 2nd: Democrat Jeff Van Drew defeated Republican Seth Grossman
New York's 11th: Max Rose defeated Republican Dan Donovan,
New York's 19th: Democrat Antonio Delgado edges out incumbent Republican Rep. John Faso
Pennsylvania's 5th: Democrat Mary Gay Scanlon won against Republican Pearl Kim
Pennsylvania's 6th: Democrat Chrissy Houlahan beat out Republican Greg McCauley for the open seat.
Pennsylvania's 7th: Democrat Susan Wild defeated Republican Marty Nothstein for the open seat.
Minnesota's 2nd: Democrat Angie Craig unseated Republican incumbent Jason Lewis
Minnesota's 3rd: Democrat Dean Phillips defeated incumbent Republican Erik Paulsen.
Illinois' 14th: Democrat Lauren Underwood unseated incumbent Republican Randy Hultgren.
Illinois' 6: Democrat Sean Casten defeated incumbent Republican Rep. Peter Roskam.
California's 25th: Republican Rep. Steve Knight concedes to Democrat Katie Hill.
In our district MN3, median income is 85k, (half are above that). The unemployment rate is less than 2%, for the upper half of earners it's zero. The state income tax rate for the group above the median is 7-10% in our state and similar or higher in other high tax states. Voters in the upper half of income pay $7000 and up in state income taxes and double that to include property taxes. Figure ten-fold more for the rich. Perhaps 50% of voters in our district (and all similar districts had a major tax deduction taken away from them in the Republican tax reform where the individual tax rate was barely lowered. If just 5-6% change their vote partly over that, it is a 10-12 point swing in a swing district.
We lose the votes of the poor, we lose the votes of the median to rich and we can't understand and we can't understand how we lost the House seats. Add to that that in these RINO seats they don't support reducing the size of government so we lose the conservative vote too!
Taking away S.A.L.T. deduction was the right thing to do for a number of reasons but it was done wrong and messaged horribly. Because of the inability of taxpayers to respond to it, the limit should have been phased in.
If the only perceived value in tax reform is dollars returned in your own current, static paycheck and not the economic health of the country, you aren't going to support it anyway. Did anyone see Republican House member make the case during the election of why tax reform was needed, why it was structured the way it was, how it succeeded and what is left or next to do? <crickets>
People can't easily get up and move out of a high tax state when a law changes (or they would have already). People can't lower the tax rate in their state (or they might have already) and they can't instantly downsize their house or downscale their neighborhood when a law passes in Washington with no notice. Instead they punish the party that did it.
Trump and the Republicans doubled the GDP growth rate for the nation but the message received is that it's no better than under Obama. The reaction to the great economic news, record hiring, rising tide, etc. is blah blah, ho-hum.
But take away one of our largest tax deductions - those are fighting words!