DC: House Republicans managed to pass the first comprehensive tax reform bill in over three decades Thursday without the support of 13 GOP defectors.
The bill, which passed 227-205, eliminates the state and local tax deduction, a measure designed to compensate residents of high tax states by reducing their federal tax bill. This revenue saving measure sparked opposition from Republican delegations from New Jersey, New York and California, who believe the bill will result in a higher net tax for their constituents.
Here are the 13 GOP members who voted “no” on the bill:
- Rep. Tom McClintock of California
- Rep. Dana Rohrabacher of California
- Rep. Darrell Issa of California
- Rep. Frank LoBiondo of New Jersey
- Rep. Chris Smith of New Jersey
- Rep. Leonard Lance of New Jersey
- Rep. Rodney Frelinghuysen of New Jersey
- Rep. Lee Zeldin of New York
- Rep. Pete King of New York
- Rep. Daniel Donovan of New York
- Rep. John Faso of New York
- Rep. Elise Stefanik of New York
- Rep. Walter Jones of North Carolina
Sow it, reap it, rinse and repeat.
Looks like California, NY and NJ Reps got together for a little talk before the vote.
I’m a little surprised at N. Carolina but not the others.
All states with their own high taxes that they rationalize by telling everyone they’ll be able to write it all off on their fed taxes and so they aren’t really paying as much because the rest of us are subsidizing them.
“Taxes for thee; not for me.”
The rest of us have been subsidizing CA, NJ, NY, and IL (et.al.) for decades.
Fuck them. Let them stew in their own socialist juices.
izlamo delenda est …
There is a reason SALT deductions should be eliminated. Indirectly, those of us in low tax states are being taxed to pay for high tax states. Screw California, New York, New Jersey and alll the other liberal high tax states!
Slave States; eff ’em.
No surprise here. With the exception being Jones of NC, New York, California, and New Jersey have the highest property taxes in the country. Maybe now they will rally against the insane policies of the Leftist utopias. Not likely though.
In NJ, the hypocrisy of the tax issue is unbelievable.
The local rags (all heavily Democratic water carriers) have been screaming about the Trump tax plan is bad for the state. 1 in 4 NJs will face higher taxes and the usual crappola about tax cuts for the rich on the backs of the poor. Even though there is no final plan yet, they are still screaming bloody murder.
But then on the other hand, they fully endorsed that stooge Murphy, who came out and said he was going to raise taxes, mostly to fill the coffers of the state pension funds and turn NJ into a sanctuary state, go after business, re-introduce the Millionaire tax, lifting the 2% cap on local municipalities ability to raise property taxes, etc etc.
Yet they have no problem in that 4 out of 4 NJ residents are going to suffer greatly under Murphy.
For the Rep.s whose states have state and municipal income taxes their negative vote is a fig leaf offered by Ryan and the GOP “leadership” with their full support for cover so Darrel Issa & co. won’t have to return to their home districts and explain to their constituents why their subsidy was taken away.
@beachmom, This is him (Jones) covering his ass. His district is the coast, specifically the Outer Banks.
Rich people own homes there, big beach houses, regularly blown away during frequent hurricanes.
These rich homeowners rely on the federally backed insurance to replace the million dollar homes built on a bed of sand. These same rich people would be upset if their deduction gets taken away.
The natives live frugally in block houses designed to survive a hurricane. They all have hills they build to park their vehicles, AC units are on 4 foot high platforms, major appliances sit on blocks to raise them above the water.
The rich just use taxpayer money to rebuild yet another million dollar home on a foundation of sand.
If only there were a popular book advising against that idea.
If it passes without them – great. They can claim they were against it and you keep the majority.
Also, I’ve been told that paying taxes is the pinnacle of patriotism so enjoy standing in front of that waving flag you light of pocket progtards. Now repeal the Hollywood tax cuts, credits for “green” cars, and exemptions for university endowments.
No more offshoring university endowments. We paid for the roads to those colleges didnt’ we? Police protection? Fire Departments? They didn’t build that.
I fear this will only push more of these libs to other states along with their voting habits. The law of unintended consequences.
@Openthedoor, thanks for the explanation.
Now it makes sense.
Of course none of them would ever tell their constituents that they are ripping of everyone else in the country to cover their collectivist butts.
McClintock use to be our rep. I voted for him when he represented our district. He’s actually a good representative. Our area was redistricted and we got an asshole for a rep. I’d like to hear why McClintock voted the way he did.
But, but, I thought liberals liked paying taxes. Why are they so mad about deductions being taken away?
Golden Fox
Mortgage tax deduction. This Bill caps it at $500k. It will slow New home builds
I’m familiar with the California representatives, and I believe Ryan gave them permission to vote “no” as political cover. McClintock, in particular, has been pretty fiscally responsible.
Regarding California property taxes – no, they are not necessarily the highest in the nation. Proposition 13 restricted the right of the legislature to raise property taxes, and homes aren’t reassessed until they are sold. If you bought a place 20 years ago for $100k and it’s now worth $500k, you are still paying property taxes on the $100k assessment. Revenue from property taxes is high because the cost of housing is high, and people move frequently thereby triggering reassessments.
I don’t know if the tax reform bill eliminates the property tax deduction, and I suspect it doesn’t because this is a pretty universal deduction across the nation. In many states, and not just California, New York, New Jersey or Illinois, eliminating the property tax deduction would be damaging to the housing market; as it is the loss of state income tax deductions will likely have a deleterious effect on housing at least in California.
California, at least, is generally irresponsible with its fiscal matters, and while most income earners will see a rise in their real taxes, the ones affected the most will be the wealthy in the higher state tax brackets. But I have spoken with many well-to-do progressives who have complained that their taxes are too low, so this tax plan should make them happy.
Brad – is the deduction capped at $500K, or is it the mortgage amount, as in deduct interest up to the $500K level? I can’t find a clear answer, and since it’s gov’t and lawyers and accountants writing this bill I expect there is no clear answer.
Let’s see if it passes the Senate. I have my doubts.
Burner
As I understand it the deduction is capped at 500K. But I have not been able to follow it for the last week or so, so it could have changed.
Wyatt
Our county is constantly trying to re access property values for property owners. Legally they are required to drop the accessed value in a down market. The county is trying to get around the law by claims of “Property Improvements”. It’s getting to be quite the shell game. The bastards get over 1K a month out of me just on the house.
All Bullshit; All the Time.
The greedy fucks (Fed, State, and Local) keep raising taxes and lying about it.
My property taxes increased 40% over a year, and the county tax assessor blamed the State, but the money went to the local school district (itemized bill).
And the county assessor is the COUNTY assessor – not the STATE assessor!
She is an elected official and (apparently) wants to keep her job – so she’s lying about the whole thing.
The Senate and the House are lying, too. They’re shifting the burden – eliminating NOTHING – and lying all the way to the bank. They won’t cut a single program, get rid of a single parasitic maggot, cut back a single dollar on “immigrant support” for lawyers, stop one dollar from being stolen, tell even a single Union that they must insure their own plundered pension fund, or repeal ObolaCare.
Sorry, kids; It’s a “… sound and a fury, signifying nothing.”
izlamo delenda est …
Where’s the surprise. All from commie states.
$500,000 cap is the Mortgage amount, not the interest.
This bill does eliminate the ATM and believe me, $25,000 in interest deductions ($5% on $500,000) is completely eliminated with the ATM based on today’s tax code. I get ZERO deductions on my interest payments. My income isn’t all that high, most of it is capgains and dividends. but that ATM thing which gets eliminated will be a huge boost for most. It zeros just about every deduction once your income bumps up above $125,000
BACK THE FRICKEN TRUCK UP! Bad Brad; You pay 12k a year just in property taxes?
F4UCorsair
That’s just the house. You don’t want to hear about the commercial stuff.