Sure, it works like this:
IRS: Each of you pay 39%.
New Yorker: But the Democrats running my state made me pay an additional 10% in income taxes!
IRS: OK, you get a discount.
Texan: Wait, where’s my discount?
IRS: Too f’n bad.
“Sure, it works like this:”
How it really works:
Irs: Give me 39%
New Yorker deducts his 10% in SALT (or whatever level it may be) and pays IRS $40,000.
While somebody in another state pays $9,000. Without much for SALT deductions.
Worse, we have people on this forum and elsewhere who pay absolutely NO income taxes clamoring for the guy in NY to pay more.
Pinging Texas payer to post #80 on this thread.
I pay $19,000/year in property taxes on my home in rural West Texas.
Our tax rates are so high because, due to our supposedly Republican legislature, county tax rates over 1.09% are primarily sent to Dallas and Houston. So in order to get an effective 1.2% tax rate needed to fund our local schools, they charge us 1.8% (because .6% is siphoned off).
Note, this is MY HOME. Not my ranch.
This is screwing a lot of rural people in Texas — who don’t have the votes to stand up to the big cities.