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Well, sure - but CA and NY also have very high income levels: https://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP_per_capita https://en.wikipedia.org/wiki/
by usaar333 9y ago
Well, sure - but CA and NY also have very high income levels: https://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP_per_capita https://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP_per...
We have a progressive tax system, so rich states should be paying more than they receive in federal funds.
The more relevant question is how do the Atlantic's charts look once you correct for income levels? Given that CA's returns are barely less than 1, I suspect that CA is in a situation where the tax deduction is effectively allowing the federal government to subsidize the state.
- jdavis703 9y agoSure, but we're supposed to be creating a tax cut, not a tax hike. If you want to raise taxes to either reduce the deficit or create new government services that's fine by me. But instead this tax cut will go to cutting the taxes of the wealthy and increase the budget deficit. This will be paid for by states like NY and CA and won't help the tax system become more progressive.