by Countable | 12.11.17
The Washington Post reports that the Trump administration is working to put the final touches on a massive infrastructure plan, a policy priority that has gotten sidelined due to health care and tax reform. But the details that are emerging may concern lawmakers and tax payers on both sides of the aisle, since they involve placing the majority of the burden for funding projects on the states, who may be forced to raise taxes.
A central controversy in the GOP tax reform plan is the removal of the state and local, or SALT, tax deduction, particularly in blue states with high local tax rates. The administration’s plan would incentivize states to raise up to 80% of the necessary revenue for infrastructure projects. The administration is only planning on covering $200 billion of the $1 trillion worth of spending outlined in the plan.
According to the Post, "Jurisdictions could raise their gas or sales tax rates, for example, or increase revenue flowing to infrastructure projects in a variety of other ways, such as imposing new tolls on roads or selling off existing assets to the private sector to generate money for new projects."
Democratic lawmakers in states with higher tax burdens are likely to resist a plan that involves potentially raising state and local taxes even further in order to capture the federal funds. A Democratic infrastructure plan distributed earlier this year involved more than five times the level of federal investment, and a significantly lower percentage of investment by the states.
Republican lawmakers are likely to resist the raising of taxes on principal, as well as resist a major federal spending package in light of deficit concerns. The White House maintains that raising taxes is only one of the options for raising revenue, and that Republicans will respond positively to the "fiscal responsibility" of the plan.
Do you support a federal infrastructure plan that places the vast majority of the funding burden on states? Do you think the balance should be different? How do you think states should raise the money to cover their share, whatever that may be?
Tell us in the comments what you think, then use the Take Action button to tell your reps!
— Asha Sanaker
(Photo Credit: Wikimedia / Creative Commons)
Written by Countable
In 2016 Colorado tax roles enjoyed a surplus in the BILLIONS. now they can pay for schools, healthcare, and infrastructure projects that put people to work. Thanks to legalized cannabis. And there happy about it.
If our taxes are not paying for health care or infrastructure? Then what are we paying for?
A double whammy, horrible tax plan & higher taxes for this, way to screw the little guy, while the 1% & corporations, get a tax gift
The Federal infrastructure plan. The government has no money of their own. All the money comes from taxpayers. The states have no money. All there money comes from taxpayers. So lets make this simple, if the states see something in the plan that they have to,or want to do, say great and all the federal taxpayers will chip in 20%, and the states should say thank you.
If this wasn't so predictable and disastrous, it would be humorous. Next big tab soon to be delivered to the states, the public education tab. 💩💩💩You asked for it boys and girls when you took down Common Core and it will soon be time to pay the piper. Still think giving into all those teachers' unions at the expense of our children was such a brilliant idea? How about that expensive media campaign you sponsored to spread lies about the real mission of Common Core, coherent, cohesive, equitable national education?
What a ripoff!! You bums ! How dare you use your position to screw the people you freakin work for! Can’t wait to vote you dogs out !
This will be a real boon for those poor states that you say already have to pay more for government assistance to other states while getting less. Yet again another bit of fallout from a upside down tax overhaul. Great job GOP. Your party should be really really proud of what you’ve become.....
Infrastructure has to be addressed nationwide and usually is improved anyways as money allows while bigger projects need help. If America comes first then show us where we can concentrate our dollars on us for once and make us strong. Yes we should all be budgeting carefully. Rome wasn’t built in a day, I think time and thought will prove we can do things a little to a time on a relative schedule regarding necessities and carefully use tax dollars across the board.
This is wrong
No I don't support dumping the cost on the states. It cost a lot to payoff corporations. Everyone else is going to feel a lot of pain. VOTE!!!!!
Woohoo. Shove it off on the poor people while the rich keep their money. This is crap! Impeach the entire administration of deplorables!
Soooo they cut taxes at the federal level, did away with the state tax deduction, and now their raising state taxes? Either I’m missing something, or anyone who lives in a state with state taxes, their bill actually went up.
If you keep electing the same idiots into office how can you expect anything different
Of course they are making states pay for their own infrastructure! The Republicans are all about destruction and getting the middle class to carry the burden
Anything, let me repeat, ANYTHING proposed by Republicans is not good for the working class! You don’t even have to read the proposals, just tell your congressional representatives to vote NO.
About time The Northeast, California a few other states pay full federal taxes instead of writing off State taxes. The rest of us sick and tired of subsidizing the federal income tax.
The rich and businesses better pay for it. The poor and middle class will have enough to pay with the current tax bill.
Higher taxes to the middle class but big tax breaks and the ability to make tons of cash for the wealthy who own the companies doing the work and those who invest lots of money in the projects. Republicans would like the opportunity to bankrupt the states so there is no funding to support the poor, disabled, elderly and children. Congress won’t provide funding to support them or to the states. The next step is to bankrupt the states so there is no funding for them to use. Higher taxes means more money for the govt to design programs to benefit the pitiful, striving millionaires and billionaires. Like for the trump family.
I think it’s time to return MOST POWER and MONEY back to THE STATES. The federal government has shown it will waste our tax dollars on pork. There’s BREXIT and now there needs to be a divorce between the states and the feds here in the US.
Just another example of the cons run against the American people during the last election. This President promised to give us a better, cheaper health plan than the ACA - or not. He promised he would give us the biggest middle-class tax cut ever - or not. He promised he would not touch Social Security, Medicare or Medicaid - or not. He promised better, higher-paying jobs - or not. He promised to fix our crumbling infrastructure through a big, beautiful plan he had - or not. I am sure this plan will be about as detailed as the joke released by his Treasury Secretary today called the tax scam analysis. The details are not important as long as it fits on a single sheet of paper. Unfit. Dangerous. Corrupt. Those are details on which we should be focused.