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I know I don't really understand the most recent tax bill but I've heard that red states will get more of the benefit from the changes in it. Is that not true o
by tdb7893 8y ago
I know I don't really understand the most recent tax bill but I've heard that red states will get more of the benefit from the changes in it. Is that not true or is there a good reason for it?
- metalliqaz 8y agoIt's not so much benefit but less pain. There are many changes, but one of the most significant is the removal of the deduction for state taxes paid. Blue states tend to spend a lot more money on government services, especially education. This makes the taxes higher, but it was evened out somewhat by a reduction in federal tax burden. With that gone, it adds a lot more pressure to tax payers in states with higher property taxes. Those states tend to be blue. When evaluating the wisdom of this change, keep in mind that those states also tend to be net payers into the federal system, while red states tend to be net takers from the federal system. There are exceptions but the trend is clear.