Democrats in high tax states such as New York, New Jersey, California, and Illinois bashed the Republican led Tax Cuts and Jobs Act for capping the State and Local Tax (SALT) deduction at $10,000. Democrats from these states claimed “[t]he rich would flee, the middle class would suffer and blue state budgets would bleed.” However, this isn’t happening.
Bloomberg: “New York, in fact, saw revenue rise $3.7 billion in April from a year earlier, thanks to a shift in timing of taxpayer payments, a stock market that rallied through much of 2018 and a decade-long economic expansion that’s pushed national unemployment to a 50-year low. Similar windfalls arrived in New Jersey, California and Illinois — states that, like New York, had warned of dire consequences from the law.”
2020 Democratic presidential contenders that represent high tax states such as Elizabeth Warren, Kirsten Gillibrand, Kamala Harris, and Cory Booker have all denounced the tax cuts, specifically citing the SALT deduction cap. Democrats in blue states are more interested in championing liberal talking points and refuse to recognize the positive impact that the Tax Cuts and Jobs Act has had on the now booming U.S. economy.