Economics
Blue-State Tax Games Could Make the Rich Even Richer
- Most residents even in high-tax states will get federal cut
- Governors support new state rules so less goes to Washington
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In liberal bastions like metro New York and California, the Trump tax overhaul has been criticized as economic warfare.
But as elements of the plan come into focus, tax experts are concluding that some of the most dire predictions for high-tax blue states -- particularly surrounding the treatment of state and local taxes -- may not pan out as feared.
In blue New Jersey, for instance, the new law will raise taxes on about 285,000 filers earning between $79,890 and $336,620, with a typical hike of about $1,400, according to an analysis by the liberal Institute on Taxation and Economic Policy. However, more than 1.2 million New Jerseyans in the same income range will get a cut, with typical savings of about $3,000, according to the analysis.