This would be funny were it not for the fact that those proposing this legislation are actually serious.
We all know that come January 1 everyone’s taxes will rise substantially. The Obama administration, however, seems to be backing an extension of the Bush tax cuts except for the “wealthy”, who are currently defined as anyone making more than $250,000 per year. Most democrats in Congress seem to agree with the President, but not all.
Representative Jerrold Nadler (D. N.Y.), joined at the moment by 5 other House members from New York, is proposing legislation that would
require the IRS to adjust tax brackets proportionally in regions where the average cost of living is higher than the national average.
According to Representative Nadler,
[t]he basic costs of life in the New York region are much steeper than in most parts of the country…[i]t’s time for our tax code to take reality into account when assessing someone’s tax liability.
Humm…the basic costs of life in New York are higher due, in large part, to the ridiculously high taxes paid by New Yorkers in sales taxes, state and local income taxes, and property taxes. Those taxes make it more expensive for businesses in New York to produce goods and provide services, and those increased costs are passed on to New Yorkers.
But, in Representative Nadler’s view, it is perfectly acceptable for those in Orlando, Florida, for example, to pay more in federal income taxes so that rich New Yorkers get a tax break and remain in New York, thus letting New York continue its reckless spending and ever higher taxes.
Even more curious, though, is that it would appear that Representative Nadler hasn’t read the tax code. New Yorkers, rich or poor, already get a federal income tax break that is proportionally higher than those living in Orlando…they can deduct their high state income taxes, local income taxes and property taxes on their federal tax returns, whereas, Floridians can only deduct their relatively low (by comparison) property taxes.
All those in favor of further subsidizing New York, please raise their hands.