In an opinion article titled, "Don't Increase Taxes On Californians," Russell Goldsmith, City National Chairman and CEO and Chairman of RBC Wealth Management–U.S., argues that Republican lawmakers are hoping to pay for the multi-trillion-dollar federal tax cuts by double-taxing Californians, New Yorkers and millions of residents of other high-tax, high-services states.
"This partisan and punitive move is an assault on the economies, governments and taxpayers of such largely Democratic states as California, New York, Illinois, New Jersey and Massachusetts," Goldsmith writes. "If these states' voters, in both parties, fully understood the substantial state and local tax increase they are facing, they would be outraged."
The article goes on to state that individuals who itemize their federal returns could see the cost of their state and local taxes go up 30 percent to 40 percent because there will be no deduction for them on their federal tax returns if the Republican plan passes. This will generally not be offset by the proposed modest federal tax cuts.