[Magnum44]

As we have been discussing for weeks, this bill is a disaster for millions of taxpayers. Because they wanted it to be "revenue neutral" - they chose to pick winners and losers. The clear winners are the corporations. The losers will be millions of middle class families, many who will have their Federal taxes raised under this bill.

I have a different view, though it requires being altruistic to the betterment of the nation, not of self.

Certain states (CA and NY for example) have run amok with their own tax and spend policies, and have abused the federal deduction as an excuse for state spending irresponsibility. This is what is meant when you see the claim that the states with lower income taxes are "subsidizing" states with higher income taxes. Coincidently, it is mostly red states subsidizing blue states.

Removing the federal deduction for state income taxes unmasks this bad state behavior. It brings federalism to the front and lets people once again decide if they want to live in one state or move to a better state.

I applaud this, even though I currently live in CA (a situation I am hoping to change soon) and will lose this deduction. I am hoping the doubling of the standard deduction will get me close to the same tax liability as I had previously.

[SkyPilot]

You can “unmask” the tax burden all you want. It won’t stop high tax states from spending, giving money to the takers, or prevent governments from punishing their tax paying citizens.

Capping property, state, and local deductions combined at $10K and eliminating the personal exemption is a massive FU to families in high tax states.

[Mariner]

“his is what is meant when you see the claim that the states with lower income taxes are “subsidizing” states with higher income taxes. “

Abject ignorance.

The blue states you’re referring to subsidize the most of the red states with their income taxes paid vs benefits received.

Simple research on the interwebs will edify you and prevent further embarrassment.