Republican plans to slash the state-and-local tax deduction are already reaping benefits in high-tax states. Democrats in the Northeast say they’re having second thoughts about raising taxes. And lo and behold, California Gov. Jerry Brown is arguing that public pensions aren’t ironclad.
Last month the Governor intervened in a state Supreme Court case regarding the constitutionality of his modest 2012 pension reforms. Several unions have challenged the reform’s limitations on pension “spiking,” including a provision that prevents workers from buying pension credit—known as “airtime”—at up to 40% below cost for years they haven’t worked. The perk, which Democrats granted unions in 2003, has allowed workers to retire early with handsome pensions.
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