The liberal news cycle is relentless. Even though you know better, it still probably affects your perception. Here’s an example. Even though you know President Trump has been winning left and right, you’ve probably overlooked the significance of many of his wins.
You know that the tax breaks passed for 2018 were huge, but despite the booming economy, more money in your pocket and general rising prosperity, you’re overlooking many components of what that tax break did.
One of the most important changes to the tax code was the elimination of deducting state taxes. Some of you live in states where that wasn’t a big deal. Others are feeling the pain of that shift. Either way, this matters because it reversed a longstanding trend of states using federal taxes to effectively subsidize their bloated budgets.
California is one of the best examples. They have some of the highest state income taxes in the union, and they spend every last penny they can get their grubby hands on.
In the past, they were able to get away with the high taxes because residents could deduct state tax payments from their federally taxed income. As of 2018, that stopped being true. The result is forcing states like California to rethink their budgets. It’s also changing proportions of state power.
This video will clearly explain just how much things are changing, but here’s an idea to get you thinking. New York and California are both likely to lose Representatives because so many Americans are fleeing these states. Meanwhile, Texas will likely gain seats.
While there are many factors at play, one of the big drivers is tax law. Watch the video and it will make perfect sense.