But this will never happen because this "fiscal cliff" kabuki theater is not about tax fairness -- if it was the deduction would already be gone. For Obama, it's about protecting Democrats by preserving an incredibly unfair aspect of the tax code. Allowing taxpayers to deduct their state and local taxes from their federal income tax means they pay a lot less, for a given level of income, than taxpayers in states with low state and local taxes. Deductibility results in a subsidy from low tax states (read -- Republican controlled) to high tax states (read -- Democrat controlled).
From the Wall Street Journal editorial of 12/17/2012 (link):
I would add to the last clip from the WSJ: “Mr. Obama wants to raise tax rates, rather than eliminate deductions, so his fellow Democrats can keep raising state and local taxes without bearing the full economic and political cost....” and thus continue to play the taxpayers of Republican-dominated low tax states for suckers.
John M Greco