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That’s not double taxation. The federal government takes X% of the total. The state government takes Y% of the total. They’re aware of each other. They can coor
by erentz 8y ago
That’s not double taxation. The federal government takes X% of the total. The state government takes Y% of the total. They’re aware of each other. They can coordinate accordingly.
Avoidance of double taxation is not accomplished with a deduction it is done with a tax credit. That is when I pay A% of tax first to the country of primary residence, and then work out I need to pay B% to a country that has secondary claim on it, I can deduct the whole amount of A tax from B tax.
I understand the inequitable spending. Yes richer states subsidize poorer states. But is the right solution to that a complication of the tax system? I don’t think so. I think that’s a spending problem that should be addressed for what it is. And it will never be possible to have equitable spending. There will always be poorer and richer parts of the country. We can’t make the poorer parts richer by giving them less money. Within a state like CA or NY there are also richer and poorer parts that may not get equal spending from the state.
People in CA and NY get a raw deal mostly because they wind up paying as much (if not often more) taxes as countries that offer universal healthcare, or better education, (and which can manage to build a friggen railway). But that again isn’t resolved by an extra federal deduction. It’s resolved by addressing the dysfunctions or poor spending priorities head on.
To which the complaint is usually again that the fault lays with the poor “red states” who prevent that. To which I say, no stop scape goating. Nancy Pelosi is from CA and doesn’t support fixing any of those things. She’s a blue state representative at the highest level of the house. So no, CA and NY politicians are just as much a part of the problem. Stop blaming “red staters”.
- daveFNbuck 8y ago> They’re aware of each other. They can coordinate accordingly. The thing you're arguing against is coordination.
- jeffbax 8y agoAgreed. The total disregard for caring how effectively money is spent in high tax states is a huge problem that does a disservice to the goals of the voters. The pension bomb is going to be a reckoning.