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> The interesting thing is the long term consequences might be that enough people leave NY and CA and move to traditional red states to change them to blue I t
by citilife 8y ago
> The interesting thing is the long term consequences might be that enough people leave NY and CA and move to traditional red states to change them to blue
I think it's more that blue states tend to offer more social welfare and thus higher taxes. Texas for instance has no state income tax, so wouldn't be impacted regardless.
- brewdad 8y agoTexas has high property taxes and high sales taxes. Both are capped under SALT the same as income tax. Texas is very much impacted.
- dragonwriter 8y agoBecause the cap is on total dollar value and not on rates, degree of impact is loosely proportional to tax rates × per capita tax base. Or, more simply, per capita state and local tax revenue. High rates alone don't mean you are impacted. Texas is below the national average (at least as of 2015); they are, therefore, less impacted than most states. https://www.taxpolicycenter.org/statistics/state-and-local-tax-revenue-capita https://www.taxpolicycenter.org/statistics/state-and-local-t...
- dragonwriter 8y ago> I think it's more that blue states tend to offer more social welfare and thus higher taxes. Because the cap is a per capita dollar cap, not a rate cap, it mostly hits states that are wealthy, as aggregate tax rates (share of economy taxed) between states vary less than per capita size of the economy.