Thursday, January 20, 2005

Schumer misses the point on taxes

Today's New York Sun reports on Senator Chuck Schumer's opposition to Bush's forthcoming tax simplification plan because it likely will eliminate the deductibility of state taxes from federal tax returns.

According to the Sun, Schumer said that not allowing taxpayers from high-taxing states like New York to deduct state taxes from their federal returns would
"create a giant sucking sound as the best and brightest workers, and the most productive companies, face incentives to tear up longstanding roots and move to lower-tax jurisdictions."
To summarize, Schumer opposes the Bush plan because it will create higher federal taxes for New Yorkers. But no sane person thinks the Bush plan will result in higher taxes, not even for New Yorkers.

On one point, the senator is astute in his thinking. He clearly understands that high taxes are disincentives to people and businesses. So why is he not on the vanguard of those pushing for lower taxes at all levels?