Something you must also consider. Since the state income tax paid is DEDUCTABLE from your Fed Income tax, then your Fed Tax liability is LOWER than the Fed Tax liability for someone with the SAME GROSS income in a state with NO state income tax.
The following is for REFERENCE ONLY and I have NOT checked the EXACT taxes etc.
IF you earn $100,000 in Tx and have NO OTHER deductions, then you pay Fed Taxes on $100,000. In Montana, with the SAME Gross $100,000, you pay Fed Income Tax on $89,000.
Therefore, in states with NO STATE INCOME TAX, you SUBSIDIZE the Fed Income Tax of People who live in a state WITH a State Income Tax. Because every dollar not paid by one person MUST be made up by another.
Well put.
It's been tough to get this changed because of the "tyranny of the majority" who know THEIR taxes will be increased if we in the "no-state-income tax" states were treated fairly.
Sounds like you're opposed to this setup. Would you prefer DOUBLE-TAXATION then?