The state tax payments were a deduction, not a credit. So even before the recent SALT limitation raising state taxes would "harm" your state's citizens in the

The state tax payments were a deduction, not a credit. So even before the recent SALT limitation raising state taxes would "harm" your state's citizens in the sense that you used "harm". As an example, if your federal marginal rate were 25%, paying $4k in state taxes would only get you $1k off your federal taxes, not $4k.