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State and local government taxes aren't some kind of luxury items that I purchase and I can stop paying if I chose so. They are complementing the federal gover
by takeda 6y ago
State and local government taxes aren't some kind of luxury items that I purchase and I can stop paying if I chose so.
They are complementing the federal government so it doesn't have to provide these services.
If federal government would take care of everything and this was some extra service then I would agree with you, but it isn't.
- mrep 6y agoBut you can move to avoid state and local government taxes to stop paying them. And citizens in high tax states with high benefits that only benefit the local population get to reduce their federal tax burden with SALT deductions that others in the country don't benefit from. Apparently I have to get more hypothetical, imagine 49 states introduce a 100% income tax but with that tax revenue, they give free rent, free food, free healthcare, free netflix, the works. With unlimited SALT deductions all of their income would go to the state governments and the 1 last state would be covering basically the entire federal budget (they get some from other things like corporate taxes). Obviously totally unrealistic but the point is that increases in state and local taxes with SALT deductions benefit the state and local population at the expense of the federal governments tax revenue.
- JediWing 6y ago> But you can move to avoid state and local government taxes to stop paying them. You overestimate how difficult this would be for the vast majority of people. > imagine 49 states introduce a 100% income tax... So your solution is to ask the citizens of states with 100% tax rates to pay > 100% of their income in taxes? How would this work?