Quote:
Originally Posted by Jim in CT
a vague insult from YOU? get outta here.
before the salt caps, two
identical people ( same income, mortgage, other deductions, similar in every way except state taxes) paid very different federal income tax rates. because the person in a high tax rate got a large federal deduction for his high state taxes, not available to the person in a low tax state. so the person in the low tax state paid
much more in federal income tax, than they’d pay ( all other things being equal) in a high tax state.
it’s pretty simple and obvious, take off the tin foil hat for a second.
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Depending on income the variation in the effective federal tax rate for individuals could very well be negligible. The big factor here you're omitting is that the states targeted by the GOP tax plan have significantly more wealthy people who pay a lot more in taxes. So the low tax states aren't subsidizing the high tax states, it's actually the other way around.
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