Democrats’ fear mongering that taxpayers and businesses would flee high-tax blue states after the Tax Cuts and Jobs Act (TCJA) capped the state-and-local tax (SALT) deduction at $10,000 in 2017 have been proven wrong.
A Bloomberg report in early June showed that the “wealth exodus” Democrats predicted was completely overblown.
Data from IRS tax returns show that there was no observable change in dollars of income from people moving in blue states after 2017 Tax Reform compared to previous years. New York actually saw more dollars migrate in than out
In other words, taxpayers didn’t bolt for lower tax states.
- Democrats are Pushing for a Handout for the Wealthy. Eighty-five percent of the tax cuts from the repeal of SALT would go to the richest five percent of taxpayers. Some experts have warned that repealing the SALT cap only widens income inequality.
- Tax Reform Worked. After Republican tax reform, the highest earners paid the greatest share of income taxes, and taxes were cut for American families across the board.
- Democrats’ Messaging is Hypocritical. Democrats insist on massive tax breaks for the wealthy while holding out on support for Biden’s tax hikes on blue-collar American workers.