I’m sure I’m a minority here opposing this. My problem is that you can deduct the local/state TAX from INCOME. I want to deduct the local/state TAX from federal TAX.
Feds should set my tax rate at 20% of my income (or 30 or 40 or 25). If it’s 20% and my state taxes me at 5%, my state gets 5% and feds get 15% of my income. If my state wants 15%, they get 15% and feds get 5%. There is NO quicker way to get states to pay attention to the 10th amendment. Feds will be getting <1% of my income after the next state congress meets. And, if feds up my rate to 40%, they will still get 1% (or less) after states increase to 39%. States do not want taxes to come back to them with strings if they have the option of getting it without the middleman taking a cut and strings.
Even better if I have NO federal taxes. Feds collect taxes from states. My state collects their federal obligations plus their cut from me. I can still move if my state wants too much and another state offers me a better deal.
“Feds collect taxes from states. My state collects their federal obligations plus their cut from me”
That’s the best system all around, just eliminate all direct federal taxes to individuals and let the states figure out how to pay the bills.
However, I don’t think any national or state politicians are keen on that idea, so it will probably never happen.