[Norseman]

I’m not certain, but I suspect that it’s really because the blue states have a lot more residents with exceptionally high incomes.

The SALT deduction actually keeps their federal tax contribution down because it lowers their federal taxable income.

[robroys woman]

The SALT deduction actually keeps their federal tax contribution down because it lowers their federal taxable income.

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And by reducing their Federal tax burden, it keeps the money in the state.

But not any more. :)

When you make an activity tax deductible, you get more of it. Conversely, when you remove the deduction, you get less of the activity. You will be seeing tax revolts in states where the tax payers are adversely affected by this.