Judge dismisses high-tax states' lawsuit against Trump tax deduction limits

foxbusiness.com ^

[Be Free]

"The average NJ/NJ/CA/CONN person pays more in federal taxes than the rest of the country. How is the Federal government subsidizing them when they pay more to begin with?"

If they were paying more before this change, it was because they were earning more (higher wages = higher tax bill). But if the gross earnings were the same, the high-tax state-resident would pay LESS Federal tax than a taxpayer in a low-tax state because the state tax-deductions were worth more (higher deduction amount = lower tax bill).

Said another way, someone from New Hampshire was paying more in Federal taxes than someone from NY, NJ or CT when they had the same gross earnings. Why should these 2 taxpayers have different Federal tax obligations? As the difference is due solely to their respective States' tax rates, the lower tax-rate-state citizens were effectively subidizing the higher tax-rate states, and providing some insulation or cover for their politicians. Now those politicians have a greater burden in justifying those high rates (which is a good thing!).

[georgiarat]

Not only state taxes but many have local income tax as well. If those states want to subsidize large state bureaucracies and pensions fine. don’t send me the bill.

As far the fact they pay more in federal income taxes they also put the representatives in that propose large federal programs.

[SunkenCiv]

Thanks tomkat.