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I disagree with this bitching that rich states are “subsidizing” the poor “handout” states through federal progressive taxes. This is how progressive taxation i
by yonran 4y ago
I disagree with this bitching that rich states are “subsidizing” the poor “handout” states through federal progressive taxes. This is how progressive taxation is supposed to work, and it would be clearly insensitive and arguably incorrect for a rich individual in the rich state to complain that he is subsidizing the poor person in a poor state. Rich states collect rents from winner-take-all markets that serve the nation, and it is good pro-equality policy to return some of the wealth back with the rest of the country to reduce inequality and promote opportunity.
Edit: to respond to the comment below: I’m not arguing that local taxes should be low; in fact, I think property taxes should be much higher and fairer in California. My point is that the federal government should not provide a federal tax break for local spending e.g. on education. The coasts already do too much opportunity hoarding.
- Retric 4y agoWhat bitching? My comment was purely descriptive. The winner takes all nature is a result of those high taxes and the services they provide. Arguing for lower state taxes in rich states is arguing to destroy the very thing that enables these subsidies in the first place. NYC for example couldn’t survive without the infrastructure its taxes pay for.