Cost of living adjusted tax increases?

The new plan to tax more people is now being undertaken by Representative Jerrold Nadler, a Democrat from New York. His "brilliant" plan includes higher tax rates according to the cost of living. This is a response to the Bush tax cuts expiring, but the tricky part is that the tax increases were supposed to hit the heavy Democratic States, like New York, California, Connecticut, and New Jersey. So Mr. Nadler brought up a solution to raise taxes on everyone but "taxpayers in areas with a higher cost of living." That also ensures that the rich Democrats who fund his campaign will not be affected by increased taxes. 

According to the Washington Examiner:

In other words, the various tax brackets would apply to residents in certain regions at higher income levels versus other parts of the country. A family with an income of $50,000 or even $1 million in Manhattan would pay less federal income tax than a family with the same earnings in Omaha. The bill is called the Tax Equity Act, but a more accurate title would be the Blue State Tax Preference Act.