Top 3 corporate revenue contributors to the fed, in order, are TX, CA, NY differentiated by small percentages. The remaining states are practically off the map.
Hey, when Louisiana needs a few hundred billion to recover from a hurricane, you don't expect their citizens to pay for that - do you? NY, NJ, TX, and CA better pony up. Too bad we have to cut your deductions though - the hedge fund billionaires wrote the bill.
This is in many ways quite artificial.
NY and CA (and TX) residents include many of the largest corporate owners in the US, besides these states being the HQ’s of the largest national corporations.
They report income in these states based on their operations everywhere else. The money they make in South Carolina is (mainly)reported in New York or CA.
Add to that that they also are the home of the largest lenders and holders of debt, revenues from which are also reported there.
If each state were an independent country (a hypothetical), its tax laws would require reporting local operations income to be duly taxed.
This is irrelevant. People are taxed on income not on state by state basis. This statistic while an interesting tidbit has no effect whatsoever on whether the people in these states should get to itemize their state taxes away. Anyone who doesn’t itemize is not effected by losing this deduction. As I have stated in other threads I live in NY and Have itemized for at least the past ten years and I am willing to take the hit if this hurts massive democrat voting states.