3 ms·
Here's another point to consider: the Trump tax "cuts" in 2017 were in fact a giant middle finger to college-educated workers in coastal blue states, in three m
by cletus 5y ago
Here's another point to consider: the Trump tax "cuts" in 2017 were in fact a giant middle finger to college-educated workers in coastal blue states, in three major ways:
1. The $200-500k Federal tax bracket actually went up;
2. Loss of the SALT deduction. There are 9 states without state income tax. Most of them are red (Washington is a notable exception). This disproportionately hits blue states; and
3. Reducing the cap for the mortgage deduction, which again only affects expensive states.
We have a hung Senate, essentially. A better description is to say that it is controlled by Charles Koch, who owns Joe Machin and the Republican Party.
So these tax hikes on blue states haven't been rolled back under Biden because of Charles Koch, basically. In the proposed bill, the SALT deduction isn't getting reinstituted, the mortgage cap is the same and the corporate tax cuts (you know, the ones that will trickle down) are only getting partially rolled back.
And even that might not pass.
But what this means is that there is now a huge financial incentive for workers in California and New York in particular to move south. Hell, it was a significant factor in me moving from NYC to Florida, as an example.
But I wonder if the unintended consequence of McConnell's and Trump's giant middle finger to the blue states could be the migration of left-leaning voters to Texas, Florida and even Tennessee and Georgia (GA has a state income tax but Atlanta is cheap compared to CA/NY).
Perhaps Tesla's move is part of that trend.
It would be entertaining, to say the least, if this hastened the political extinction of the party of Trump. The trends were such that Texas is likely to be a battleground state in ~10 years as it is.
I can but hope.