Matt Gaetz: Democrats’ new plan: Tax breaks for millionaires

The Tax Cuts and Jobs Act has been very good to Florida — especially the provision limiting state and local tax (SALT) deductions to $10,000.

By freeing taxpayers from the burden of subsidizing millionaires, capping the SALT deduction has created legions of new Floridians — because, in addition to America’s most beautiful beaches, Florida also has America’s most beautiful state income tax rate: 0%.

Facing the daunting prospect of sky-high tax bills from states in the Northeast and on the West Coast — and knowing they’d have more than a few extra bucks in their pockets from reduced federal taxes — the passage of the TCJA caused individuals and businesses to relocate to the Sunshine State.

They’ve come in droves. In 2018, over 60,000 New Yorkers came to Florida. They were joined by over 30,000 people from New Jersey, 30,000 people from Pennsylvania, 20,000 people from Massachusetts, and 18,000 people from Connecticut.

They’re still coming. Studies have estimated that, over the next five years, Florida will gain over 300,000 new residents per year — nearly a thousand people every single day.

And who can blame them? According to Carrie Baron, co-founder of Miami-based accounting firm Baron Strohmenger, residents of high-tax states can save around 13% on their tax bills by moving to Florida.

There are countless reasons to move to Florida other than tax savings. Our economy has never been stronger: Florida’s GDP is over a trillion dollars, and our unemployment rate is even lower than the rock-bottom national average … and that’s to say nothing of palm trees, the white sand beaches, and very rarely having to shovel show.

But blue-state Democrats, bowing to the demands of the donor class, are determined to throw sand in the gears of President Donald Trump’s economy — the greatest economic boom in American history.

After Wednesday’s sham impeachment vote, Democrats are doubling down on ideas the American people hate, and just voted to suspend the $10,000 cap on SALT deductions.

Not all Democrats voted for this misguided plan. Many Democrats, including my friend — and fellow Floridian — Stephanie Murphy voted against it. More surprising and dismaying, however, was the fact that a majority of Florida Democrats (including Debbie Mucarsel-Powell, Val Demings, Frederica Wilson, and others) voted in favor. What parts of Florida’s accelerated prosperity are they against?

Ultimately, the SALT deduction functions as a subsidy to wealthy residents of high-tax states. Deducting state tax payments from federal taxes keeps the very rich from ever feeling the full weight of their states’ burdensome taxes. These states then feel emboldened to raise taxes even higher, harming almost everyone — everyone but the extremely rich, that is.

The Joint Committee on Taxation has estimated that repealing the cap would decrease the tax burden of 13.1 million taxpayers.

99% of those taxpayers are those with annual incomes of $100,000 or more.

For all their complaints about “tax cuts for the 1%,” blue-state Democrats have turned a blind eye to the fact that the SALT deduction is simply a way for wealthy residents to pay less in federal income taxes. I guess Democrats’ claim that the rich should “pay their fair share” doesn’t extend to states where they are in power.

We cannot subsidize the very rich — and the failing policies of high-tax states — on the backs of the American middle class. If states are worried about losing their richest residents, giving them handouts and tax breaks is a terrible solution. Why not lower state tax rates instead — something that would help all residents, not just the rich?

Until high-tax states see the light and vote to reduce their backbreaking taxes, Floridians will continue smiling and waving at the caravan of new residents flowing down I-75, I-95, and Route 1.

Welcome to Florida!

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U.S. Rep. Matt Gaetz represents Florida’s 1st Congressional District.