I don’t believe that. Individuals in high tax states can deduct that portion paid to the state against that due the Fed.
It's a fact. IIRC California gets back $0.74 on the dollar. Connecticut is the worst at over $2500 net outflow per capita. OTOH, the state with the highest net inflows is New Mexico. Here's per capita source data.
“I don’t believe that. Individuals in high tax states can deduct that portion paid to the state against that due the Fed.’
I think that is correct.
However, deductions taken for 401k investment serve to reduce taxable income, upon which is based the state income tax. Then when retirees relocate from an income-taxing state and begin to get back their invested funds, the income-tax-deprived previous state gets no handle on the retirement income. This irritates California greatly.