Rep. Ted Poe Praises Tax Bill, Says It's Great for Texas

Rep. Ted Poe, R-Texas, told Newsmax TV on Wednesday more people will likely move to Texas as a result of the GOP tax bill.

Under current tax law, there is no limit on the amount of deductions taken on taxes paid to state and local governments, including property, income, and sales tax. In the new GOP bill, taxpayers who itemize will be able to deduct a maximum of $10,000 in state income, property, and sales taxes.

The main argument by Republican leaders for killing the state and local tax deduction is the residents of low-tax states are subsidizing high-tax states like New York, New Jersey, and California because the taxpayers in those states cannot deduct as much from their taxes.

"There will be a $10,000 deduction for taxes, property taxes, income tax, any other type of tax across the entire United States – any American can deduct up to $10,000," Poe told host Joe Pagliarulo on "The Joe Pags Show." "That changes the system, where people in Texas who don't have a high income, don't have an income tax at all, have been subsidizing states like New York, New Jersey, and California, because we have to pay more taxes, so that they can get those deductions and write those off of the federal income tax.

"So no more subsidies for New York, New Jersey, and California and these folks are going to be shocked to see how much their taxes will be with their state and their local taxes. We'll find more of them coming to Texas. We certainly will."

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