Why The Trump Tax Cuts Could Turn Into A Problem For The Republicans

  • by:
  • Source: The Hill
  • 04/09/2021
The Tax Cuts and Jobs Act combined a number of conservative initiatives into a package giving 82% of middle class earners a break.  While tax reform had a positive effect on families and economic growth, it also created an unintended consequence likely to harm Republicans down the road by sparking a major exodus of voters from blue states to red states.  These demographic shifts will have significant political impacts on some of the most critical swing states and could make it more challenging for Republicans to win future elections on both the state and federal levels.

The tax bill mostly closed a major loophole for wealthy residents in blue states with the state and local tax deduction.  By capping this at $10,000, Republicans ended a big subsidy to residents burdened by high taxes in states like New York, New Jersey, California, and Illinois, giving these residents more incentive to pack up and relocate to the low tax states.

 
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