Blue State blues -- President Trump's tax cut is supercharging job growth in low tax states
On December 22, 2017, President Trump signed a massive tax cut and reform bill crafted by Republicans without the help of one Democrat vote.
One of the bill’s more controversial measures was the limitation of the state and local tax (SALT) deduction to $10,000 through 2026. According to the CPA Journal, taxpayers in California, New York, New Jersey, Illinois, Massachusetts, Connecticut, and the District of Columbia lose the most by the limitation of the SALT deduction. That said, most taxpayers will see their federal taxes reduced, even in high-tax states.
Tax laws, as with the regulatory compliance burden and lawsuit climate, inform business decisions. Money follows earnings. People invest to maximize their returns. Business owners, to the extent they can, look for opportunities to grow their operations and maximize profits.
Now that many small business owners and investors have had a few months to digest the reality of the Trump tax cut and its SALT limitation, it appears job creation is accelerating in low-tax states relative to the high-tax states most affected by the tax law change.
Comparing the most-populous 15 states, there are five high-tax states and ten low-tax states. California, New York, New Jersey, Illinois, and Massachusetts comprise the largest high-tax states.
The low-tax list is: Arizona, Florida, Georgia, Michigan, North Carolina, Ohio, Pennsylvania, Texas, Virginia and Washington.
The first quarter of employment data from the U.S. Bureau of Labor Statistics is beginning to show a significant divergence in employment growth between the low-tax and the high-tax states.
http://www.foxnews.com/opinion/2018...percharging-job-growth-in-low-tax-states.html