New analysis suggests a $35 billion political giveaway to those who are ‘loyal’
“Loyalty is very important to me,” President Donald Trump once said.
And if people are disloyal, “I always find a way to get even.”
Cue your 2018 tax return.
A MarketWatch analysis shows that the states that voted for Trump in the 2016 election will get the majority of his tax cuts — even though they only pay a minority of all federal taxes.
That’s according to data from the Internal Revenue Service, and an independent study of the tax reforms. The net benefit for the states that supported the president are likely to come to $35 billion in this tax year alone, analysis shows.
It’s “an economic civil war,” said New York governor Andrew Cuomo at a press conference recently. The tax giveaway “literally restructured the economy to help red states at the cost of blue states.” He called it “a diabolical, political maneuver.” The tax cuts “financed the Republican state-tax cut from the Democratic states,” he said, adding, “I mean, if people actually understood what it was that they were doing there would have bene an uprising.”
“It is not a New York-only phenomenon,” Cuomo told a news conference last month. The new tax structure “encourages high-income New Yorkers to move to other states.”
MarketWatch looked at the calculations conducted by the Institute for Taxation and Economic Policy, an independent Washington, D.C. think-tank. Bottom line: States that voted for Trump will get 56% of the tax cuts, or an extra $35 billion.