4 ms·
SALT deduction was there so you weren't taxed on money that you never got (because it went to pay taxes).
by takeda 6y ago
SALT deduction was there so you weren't taxed on money that you never got (because it went to pay taxes).
- bhupy 6y agoThat's not how taxes work though. I pay for a ton of other things besides State taxes, like my Spotify subscription, my rent, my food, my transportation — why not deduct all of that before paying taxes as well? The State and Local governments provide a basket of services, and taxation is the price of those services. It's no more double taxation to pay all of the different governments for their different basket of services as it is "double payment" to pay different service providers the price of their goods & services independent of one another.
- takeda 6y agoBecause the state tax is not a Spotify subscription?
- bhupy 6y agoThe State tax is a (variable) price we pay for the benefit of living in the State and enjoying the services it offers (policing, fire departments, libraries, schools, utilities, roads, property rights, etc) A Spotify subscription is a price we pay for the benefit of unlimited music streaming. Both represent an exchange of money for services.