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You think it's just an accident that the rich states are high tax? No, the rich states have done much more to invest in education, safety nets, and regulation
by hcknwscommenter 9y ago
You think it's just an accident that the rich states are high tax? No, the rich states have done much more to invest in education, safety nets, and regulation (work place safety, environment, police activity, etc.). That is why they have better economies. This tax bill just takes a look at all that investment and says: nope.
- SauciestGNU 9y agoWhat's worse is that it actively sabotages responsible governance so rural and red state voters can get their revenge for being left behind.
- refurb 9y agoThat is why they have better economies. That's a bit of a stretch, no? The EU has higher tax rates than the US coastal states and their economies generally lag the US. And Texas has been one of the fastest growing states in the US, yet has some of the lowest taxes. Should I go on?
- dragonwriter 9y ago> You think it's just an accident that the rich states are high tax? No, the rich states have done much more to invest in education, safety nets, and regulation (work place safety, environment, police activity, etc.). That is why they have better economies. This tax bill just takes a look at all that investment and says: nope. This right here is the issue: removing the SALT deduction discourages public investment that is a net win before considering the distorting effect of federal taxation, while preserving the deduction means that federal taxes don't have a distorting effect. I've written up a very simplified scenario illustrating this: https://news.ycombinator.com/item?id=15855955 https://news.ycombinator.com/item?id=15855955