What? The benefits of SALT go to high tax states, such as New York and California. Alabama subsidizes the high tax states since the reduction of federal tax in the high tax states has to be made up by taxing the other states.
But don’t take my word for it. This comes from the Tax Foundation, which provided the statistics for the article above.
The deduction favors high-income individuals who are concentrated in high-tax states. Six states—California, New York, New Jersey, Illinois, Texas, and Pennsylvania—claim more than half of the value of the deduction.
https://taxfoundation.org/eliminating-salt-deduction-big-six-tax-plan/
>Six states—California, New York, New Jersey, Illinois, Texas, and Pennsylvania—
>claim more than half of the value of the deduction.
Texas has a sales tax but no state income tax.
-Frank
Out of every $ that goes to Washington from NJ we get .7 back. F The South
There is no personal income tax in Texas. At all. So the only benefit to some very wealthy Texas taxpayers, almost certainly concentrated in and around Dallas Austin and Houston, has to do with real estate taxes on their personal residences, which I know for a fact in Texas have lower rates then for business property. Thus, the benefit of the SALT DEDUCTION IN TEXAS IS EXTREMELY LIMITED.