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I don’t agree. This is simple accounting. It is the recognition that you paid an expense that lowered your income. It’s just like deductions for foreign tax pa
by digitaltrees 9y ago
I don’t agree. This is simple accounting. It is the recognition that you paid an expense that lowered your income.
It’s just like deductions for foreign tax payments. If you pay tax in Hong Kong because you live there you can deduct those tax payments on your federal tax now. Why are state taxes different?
- leereeves 9y agoBecause when you live in Hong Kong you don't live in the US. When you live in California you still live in the US.
- digitaltrees 9y agoThen why should I pay federal tax at all? And yet I do as an American citizen. And as a New Yorker I still pay federal tax. The government just acknowledged that my income was lower because I paid a state tax? How about red states start taxing their citizens to pay for their services rather than get subsidized by federal tax payers.
- leereeves 9y agoRed states pay lower state taxes because they don't want the government to do all the things blue states do. Why should red states subsidize all the things blue states pay for? The fairest system is to charge everyone the same federal tax rates. The usual objection is that blue states subsidize red states. Two problems with that. First, it isn't an accurate description of reality - some blue states are net recipients of federal funds, some red states are net payers. Second, most of those funds go to Democratic programs (entitlements) - so even if it were true, Democrats chose to do that.