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Fortunately four states lost a lawsuit[0] attempting to overturn the 2017 Tax changes, specifically they went after the cap on deductions allowed that could be

Fortunately four states lost a lawsuit[0] attempting to overturn the 2017 Tax changes, specifically they went after the cap on deductions allowed that could be deducted off Federal taxes with regards to taxes paid to states and cities. In effect what they wanted was for their citizens to be able to write off a much higher level of state and local taxes against the Federal tax debt owed. This is how high tax states in turn claw back money their citizens would other pay to the Feds, by being able to write it off Federal taxes State taxes can be increased and the burden passed along. Not much different than some subsidies that favor wealthy households over all others in the form of "saving the environment". Watch how holier than thou a hand out is defended with to understand how money is given back to those least needing it. I am guilt of accepting the $7500 handout TWICE for EVs. I have always though that it should have been restricted to much less expensive cars to encourage their development but instead the Federal credit has no limit, car price or income level. IF you pay that much Federal Tax you got it back. So don't just focus on how much the "rich" pay or don't pay, also focus on all the handouts to people with good to great incomes just masked behind feel good names. (education - in particular master and higher degrees is a subsidy to the same) [0] https://reason.com/2019/10/07/federal-court-rules-against-blue-state-lawsuit-challenging-constitutionality-of-cap-on-federal-tax-deduction-for-state-and-local-tax-payments/ https://reason.com/2019/10/07/federal-court-rules-against-bl...

ScottBurson 7y ago
Speaking as someone in a higher-tax state whose taxes went up as a result of the state tax deduction restriction in the 2017 tax bill, I wouldn't mind that if the difference were visibly going to help educate children in poorer states. Instead, it seems that a lot of it is being pocketed by people who already have a lot more money than I do. So although I can see the argument for restricting or eliminating SALT deductions, on the whole I still think the bill was terrible. I don't think you should feel bad about accepting the EV tax credit. The purpose of that is to help jump-start the industry; restricting it by income level would have diminished the desired effect. I haven't bought an EV (yet), but I'm glad you have.

ScottBurson 7y ago

Speaking as someone in a higher-tax state whose taxes went up as a result of the state tax deduction restriction in the 2017 tax bill, I wouldn't mind that if the difference were visibly going to help educate children in poorer states. Instead, it seems that a lot of it is being pocketed by people who already have a lot more money than I do. So although I can see the argument for restricting or eliminating SALT deductions, on the whole I still think the bill was terrible. I don't think you should feel bad about accepting the EV tax credit. The purpose of that is to help jump-start the industry; restricting it by income level would have diminished the desired effect. I haven't bought an EV (yet), but I'm glad you have.