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

matt gaetz
The Tax Cuts and Jobs Act has been very good to Florida

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!

___

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

Guest Author


11 comments

  • Mel

    December 19, 2019 at 7:26 pm

    Matt Gaetz your a zit on Florida’s butt.

    • dm

      December 19, 2019 at 7:38 pm

      At least he knows how to spell “you’re”

  • Edward Freeman

    December 19, 2019 at 8:31 pm

    Was there not anyone with an original thought or a modicum of intelligence willing to write a guest editorial?  Did you really have no choice but to invite the most embarrassing Floridian, a man so craven that he alone is damaging the economy of the Florida panhandle, a sycophant so complete that he shares digestive enzymes with the criminal in the White House? Matt Gaetz is a clown and as such should be contained to the funny pages.

  • DEBORAH GODBE

    December 19, 2019 at 10:22 pm

    You have my support, Matt.

  • JT

    December 19, 2019 at 11:10 pm

    Matt- the 10k limit on SALT has had unintended consequences beyond driving citizens out of high tax states to Florida. It has raised Federal taxes on individuals who pay significant property taxes but arent in the top 1% nor are ready to relocate to FL.

  • Marty Johnson

    December 20, 2019 at 4:52 pm

    Great article Congressman Gaetz! Democrats love to lie and say that they are the party for the little guy. But they really are the party for rich white liberals. My only question is WHY does Florida need more Yankees? If they come down here and vote Democrat, they’ll turn our lovely state into Little New York or Little Jersey if they don’t wise up and see what really makes Florida great: Our Republican policies!

    • Cara Marion

      December 21, 2019 at 9:53 am

      Exactly, Marty! I got a bad taste in my mouth when I read the numbers of “Democrats” moving to FL from the NE. We need to keep FL conservative or be prepared to pay taxes like the NE and be subject to liberal policies of the NE!

  • Bryan

    December 21, 2019 at 6:35 am

    So Gaetz helps pass the 1% tax cuts that are adding $1.2 trillion to our deficit and it’s the Democrats who are the party of millionaires? You’re delusional Matt. Or drunk.

  • alana

    December 21, 2019 at 8:57 am

    Congressman Matt – 100K is not considered top 1% in many US locations. Perhaps SALT should apply to a proper range of salary earners.

  • JIm Meerpohl

    December 21, 2019 at 2:13 pm

    The unintended result of SALT is to bring more left leaning US voters to Florida since the fleeing taxpayers are from predominantly blue voting states. I have lived in FL for 48 years, a lot of growth, but not all growth is real good for FL in many ways. I do not like seeing the polulace voting tendency swing to the left. To often the newcomers want things the “way they are up North” yet what drew them to the sunshine was a conservative principal of less govt and lower taxes, unlike “Up North”.

Comments are closed.


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