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Yet this particular reform _does_ tax the rich more. It's mostly those making >$200k that will be hit, and it removes what were basically subsidies for the rich
by TheAdamAndChe 9y ago
Yet this particular reform _does_ tax the rich more. It's mostly those making >$200k that will be hit, and it removes what were basically subsidies for the richest states in the country.
- munk-a 9y ago... And then it removes the alternative minimum tax, starts to phase out the estate tax and lowers pass through income tax rates. This tax cut might hit some really stupid rich people hard, but anyone wise enough to hire an accountant is going to get a lot more take home.
- TheAdamAndChe 9y agoLooking at the new tax law as a whole, you are right, but the focus of this article is on changes to the state and local tax deduction, which currently favors rich states with high taxes.
- closeparen 9y agoPeople in expensive states are not somehow better off, dollar amounts are just higher in both the labor and real estate markets. It’s better understood as localized inflation than localized wealth.
- alexanderstears 9y agoCompensating and equivalent variation. A Taco Bell beefy frito burrito costs the same in Mobile, AL and San Fran, CA. A 2 bedroom apartments costs more in San Fran, CA than Mobile, AL. But more people try to get into the bay area than cheap cities in the South and Midwest so perhaps people in the desirable areas really are better off?