The Best Argument against the State and Local Tax Deduction

by Dan Mitchell | Oct 25, 2017 | Blogs, Taxation

I’ve written a couple of times to explain why the deduction for state and local taxes should be eliminated as part of pro-growth tax reform. One of my main arguments, as I pointed out at the beginning of this interview, is that Republicans are generally unwilling to...

The Federal Tax Code Shouldn’t Subsidize and Encourage Profligacy by State and Local Governments

by Dan Mitchell | Jun 5, 2017 | Blogs, Economics, States, Taxation

The federal income tax is corrosive and destructive. It’s almost as if a group of malicious people decided to deliberately design a system that imposes maximum damage while also allowing the most corruption. The economic damage is not only the result of high tax rates...

The Federal Tax Code Should Not Subsidize Greedy Politicians in New York and California

by Dan Mitchell | Apr 29, 2017 | Blogs, Economics, Taxation

If I had to pick my least-favorite tax loophole, the economist part of my brain would select the healthcare exclusion. After all, that special preference creates a destructive incentive for over-insurance and contributes (along with Medicare, Medicaid, Obamacare, etc)...

It’s Wrong for Federal Tax Deductions to Encourage Bad Fiscal Policy by State and Local Governments

by Dan Mitchell | Sep 30, 2012 | Blogs, Economics, States, Taxation

I have a handful of simple rules for good tax policy. Keep government small, since it’s impossible to have a reasonable tax system with a bloated welfare state. Keep tax rates low to minimize penalties against income, production, and wealth creation. Since capital...