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State and local taxes should also not reduce your federal taxable income at all. High tax states can tax themselves all they want to, but that shouldn’t reduce

State and local taxes should also not reduce your federal taxable income at all. High tax states can tax themselves all they want to, but that shouldn’t reduce their federal tax burden.

scarface74 8y ago
Why not? The high tax states are also paying more in Federal taxes than they receive. The low tax states are already subsidized by the federal government.
- dantheman 8y ago
  The high tax states drive the federal tax policy and spending. When California and New York push large federal programs and higher federal taxes and then are able to exclude themselves from the cost it's wrong.
  - scarface74 8y ago
    How can the high tax states push policy when they mostly elect Democrats and the Republicans control Congress? The tax law that just passed was very unfriendly to blue states.
    - AnthonyMouse 8y ago
      > How can the high tax states push policy when they mostly elect Democrats and the Republicans control Congress? The Republicans don't always control Congress, and the Democrats generally favor program expansions when they do have control. Moreover, even when they're not in the majority, they're still in Congress. Even though the vote was mostly along party lines, the deciding vote on the Medicare expansion under Bush was a Democratic Congressman from New York. And have a look at the parties of the Representatives from California and New York. A majority of their Representatives are Democrats but they still elect more Republicans than most states have Representatives.
- RestlessMind 8y ago
  That might be accidentally true in some case, but not true in principle. There are states like Washington, which have zero income tax but which still contribute more in federal taxes (73.3B [1]) vs federal spending they receive (72.9B [2]). So it still doesn't make sense to deduct local taxes. [1] https://en.wikipedia.org/wiki/Federal_tax_revenue_by_state https://en.wikipedia.org/wiki/Federal_tax_revenue_by_state [2] https://en.wikipedia.org/wiki/Federal_taxation_and_spending_by_state https://en.wikipedia.org/wiki/Federal_taxation_and_spending_...

State and local taxes should also not reduce your federal taxable income at all. High tax states can tax themselves all they want to, but that shouldn’t reduce their federal tax burden.

scarface74 8y ago

Why not? The high tax states are also paying more in Federal taxes than they receive. The low tax states are already subsidized by the federal government.

dantheman 8y ago
The high tax states drive the federal tax policy and spending. When California and New York push large federal programs and higher federal taxes and then are able to exclude themselves from the cost it's wrong.
- scarface74 8y ago
  How can the high tax states push policy when they mostly elect Democrats and the Republicans control Congress? The tax law that just passed was very unfriendly to blue states.
  - AnthonyMouse 8y ago
    > How can the high tax states push policy when they mostly elect Democrats and the Republicans control Congress? The Republicans don't always control Congress, and the Democrats generally favor program expansions when they do have control. Moreover, even when they're not in the majority, they're still in Congress. Even though the vote was mostly along party lines, the deciding vote on the Medicare expansion under Bush was a Democratic Congressman from New York. And have a look at the parties of the Representatives from California and New York. A majority of their Representatives are Democrats but they still elect more Republicans than most states have Representatives.
RestlessMind 8y ago
That might be accidentally true in some case, but not true in principle. There are states like Washington, which have zero income tax but which still contribute more in federal taxes (73.3B [1]) vs federal spending they receive (72.9B [2]). So it still doesn't make sense to deduct local taxes. [1] https://en.wikipedia.org/wiki/Federal_tax_revenue_by_state https://en.wikipedia.org/wiki/Federal_tax_revenue_by_state [2] https://en.wikipedia.org/wiki/Federal_taxation_and_spending_by_state https://en.wikipedia.org/wiki/Federal_taxation_and_spending_...