Eliminating the state and local tax deduction through President Trump's tax reform framework could help lower taxes by $1 trillion, according to economist Stephen Moore, who helped put the original tax plan together.
Moore says eliminating the state and local tax deduction will increase revenues for the government over the next decade by $1 trillion, which can be used to cut tax rates even lower.
"We do need the trillion dollars of revenue you get from eliminating the state and local tax deduction to pay for the lower tax rates on businesses and families because we want to get this to about a $2.5 trillion tax cut, and a trillion of that will come from eliminating the state and local tax deduction," Moore explained in a conference call. "This is a provision of tax code that is quite unfair to the low-tax states and I would make the case also that if you are for limited government and more private sector growth then there is absolutely no question that the fact of state and local tax deduction is to encourage more public provision of goods and services and fewer private provisions of services."
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