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why should the Federal government finance the tax methods the states impose on their citizens. this change is good because it will bring the methods of taxation

why should the Federal government finance the tax methods the states impose on their citizens. this change is good because it will bring the methods of taxation, the value of taxes taken in, and their usage, to light. far too often high taxation states have lived with the idea that the rich won't complaint too much since they can deduct a large portion from their federal taxes. yet all those not rich enough to itemize got stuffed. people need to understand that deductions of state, real estate, and similar taxes, only serves the wealthy. Yet oddly the very same people who complain about the wealthy and taxes instantly pivot when they learn how its all done and that they will be affected. We are the rich, the vast majority posting here make far more than the average if not in multiples. people think it takes millions to be rich, but its not true when you look at the numbers.

lazyasciiart 9y ago
Why should states like California finance the federal government's handouts to other states that refuse to actually tax their own population, do you mean? And why are you ok with the federal government financing states that use property taxes, but not other types?
dragonwriter 9y ago
> why should the Federal government finance the tax methods the states impose on their citizens. It should be neutral to them, which is why State/local taxes should be deductible; non-deductibility creates an artificial incentive to avoid tax-funded programs that are a net economic benefit before considering the distortion produced by federal taxation. A longer write-up and worked example of how this is a problem that I wrote in an earlier discussion of the tax plan is here: https://news.ycombinator.com/item?id=15855955 https://news.ycombinator.com/item?id=15855955
marshray 9y ago
> why should the Federal government finance the tax methods the states impose on their citizens The underlying assumption to your question is that the money belonged to the government in the first place. By that logic, you go to work, produce economic value, various levels of government take what they want, and you receive whatever is left at their pleasure. That's your income: whatever part they decide to let you have after they're done dividing up the money that your employer desired to pay to you. Thus by not "allowing you to deduct" taxes paid, one level of government is literally trying to tax you for money that has been taken by another before you got any of it.

lazyasciiart 9y ago

Why should states like California finance the federal government's handouts to other states that refuse to actually tax their own population, do you mean? And why are you ok with the federal government financing states that use property taxes, but not other types?

dragonwriter 9y ago

> why should the Federal government finance the tax methods the states impose on their citizens. It should be neutral to them, which is why State/local taxes should be deductible; non-deductibility creates an artificial incentive to avoid tax-funded programs that are a net economic benefit before considering the distortion produced by federal taxation. A longer write-up and worked example of how this is a problem that I wrote in an earlier discussion of the tax plan is here: https://news.ycombinator.com/item?id=15855955 https://news.ycombinator.com/item?id=15855955

marshray 9y ago

> why should the Federal government finance the tax methods the states impose on their citizens The underlying assumption to your question is that the money belonged to the government in the first place. By that logic, you go to work, produce economic value, various levels of government take what they want, and you receive whatever is left at their pleasure. That's your income: whatever part they decide to let you have after they're done dividing up the money that your employer desired to pay to you. Thus by not "allowing you to deduct" taxes paid, one level of government is literally trying to tax you for money that has been taken by another before you got any of it.