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To: ijcr

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.


32 posted on 10/11/2004 12:49:51 PM PDT by TheEnigma47 (kerry will NEVER deserve forgiveness for his treachery to America's Military)
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To: TheEnigma47

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.


156 posted on 10/12/2004 7:03:04 AM PDT by Redbob
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To: TheEnigma47
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.

Sounds like you're opposed to this setup. Would you prefer DOUBLE-TAXATION then?

161 posted on 10/12/2004 9:42:59 AM PDT by newzjunkey (Why are we in Iraq? Just point the whiners here: http://www.massgraves.info)
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