When millionaires and billionaires can deduct what they pay in state taxes from their federal taxes, that leaves citizens in states who have no state taxes left to pay more when the federal taxes are raised by liberals to pay the bill.
Now they must pay their state taxes without writing them off on the federal government, and thus they pay their federal share. More money will pour into the federal coffers with out the left screaming we need to raise federal taxes.
Those living in states with no state tax, will not be looking at the feds raising taxes to cover the shortfall.
Well that’s the idea, get another lefty in and eventually they will want to raise taxes anyway.
Either way, the millionaires and billionaires in California, Texas, Illinois, etc. etc. will now be paying their fare share of both state and federal taxes.
I don’t know of a single state that has no state taxes. They may not have a state INCOME tax, but they sure as hell collect a lot of money through other forms of taxation.
This will only be temporary for most of them, though. These people pay accountants to figure out to get around these taxes, even if it means setting up a phony "permanent residence" in a state with no income tax.
Excuse me, but Texas is not a high state tax state
“Either way, the millionaires and billionaires in California, Texas, Illinois, etc. etc. will now be paying their fare share of both state and federal taxes.”
They aren’t really the problem for the RATs. It’s the upper middle class professionals who, while a lot of them are “all in” for Socialism, haven’t been asked to pay their fair share. There are two income families here in CA that have combined incomes of from $200,000 to $300,000 (or more) who have been able to deduct tens of thousands of dollars in State Income, Property, and Sales Taxes from their Federal Returns. Now, with the limitation, they are going to be getting a rude awakening about the “true cost” of Marxism/Socialism! Just property taxes are going to be a bitch for them. Buy a new $2 million dollar home ( and a lot of them do) and they face a $20,000 tax bill at a minimum. So a $10k limitation means that they will owe federal tax on half of it.