>>I never understood the state income tax deduction. Why should people in high tax states pay less in federal taxes? Why should the federal government subsidize high tax states like New York and California? <<
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?
Besides, what part of paying taxes on taxes do you not understand? Just because you are sending a check to two different places, still makes it a tax.
I get it, the grasping commie dems have raised taxes so high to begin with. That said...I’d be fine with eliminating SALT entirely. Make the rest of the country eat it as well. See who squeals more then.
“...I get it, the grasping commie dems have raised taxes so high to begin with. That said...I’d be fine with eliminating SALT entirely. Make the rest of the country eat it as well. See who squeals more then.”
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Well, I suspect that “the rest of the country” would be tickled pink to eliminate the SALT deduction entirely. I know I would. Let’s all campaign with our representatives to do just that!
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?
How? By offsetting a portion of those taxes paid. Pay your fare share bro...
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!).