4 ms·
> Why should federal taxes take priority over state? If the state is able to successfully tax its citizens and keep things closer to home—ultimately needing les
by darawk 8y ago
> Why should federal taxes take priority over state? If the state is able to successfully tax its citizens and keep things closer to home—ultimately needing less support from the federal government—shouldn’t that be a good thing?
I'm not sure i'd say that they should take priority per se, but they shouldn't funge against each other, and the federal government was there first, in the case of income.
Under the old system, if a state introduced an income tax, that would proportionally decrease the federal government's revenue collection from their tax base. That's not a very good system. If a state wants to tax, they should tax, but that shouldn't then reduce the federal government's ability to collect taxes from those same people.
- thaumasiotes 8y ago> If a state wants to tax, they should tax, but that shouldn't then reduce the federal government's ability to collect taxes from those same people. I don't understand this. Any tax a state levies on its residents will necessarily reduce the federal government's ability to collect taxes from those same people, because it will make those people poorer.
- darawk 8y agoHow so? The current system is income-based, not wealth based. Under the current system, where you cannot deduct state taxes, the federal government's revenue is not reduced by state taxes at all (after the $10,000 limit).