George Conway called it perfectly last Sunday

[Jim in CT]

Originally Posted by PaulS

capping the SALT deductions hurt the blue "donor" states much more than the red "hands out" states

so within a blue state, how does it impact republicans and democrats differently?

you’re wrong on the math. before salt taxes were capped, those in blue ( high tax) states had larger federal income tax deductions than someone in a red ( low tax states). so if i live in SC, i paid a higher federal tax rate then someone exactly like me who lives in CT. The people in low tax states were subsidizing people in high tax states. it’s not fair to them.

i got slammed by that salt cap. absolutely slammed. but it’s not unfair. Why should
someone in SC pay a higher federal rate, simply because CT is run by tax and spend
liberals?
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[spence]

Originally Posted by Jim in CT

you’re wrong on the math. before salt taxes were capped, those in blue ( high tax) states had larger federal income tax deductions than someone in a red ( low tax states). so if i live in SC, i paid a higher federal tax rate then someone exactly like me who lives in CT. The people in low tax states were subsidizing people in high tax states. it’s not fair to them.

This makes absolutely no sense at all.

[Jim in CT]

Originally Posted by spence

This makes absolutely no sense at all.

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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[spence]

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.
Posted from my iPhone/Mobile device

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.

[Jim in CT]

Originally Posted by spence

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.

“could very well be negligible”

5 minutes ago it made absolutely no sense at all. are you saying that now my logic makes sense, but the impact may be negligible?

now youre saying that wealthy people pay more taxes, and are subsidizing the rest of us? careful, you’ll get kicked out of the democratic party for saying that the wealthy pay a disproportionate share of federal income tax!

my point, which you confirmed, is that before the SALT cap, high state taxes in some states, requires subsidies in low tax states. we can debate whether or
not the effect is significant, but the effect is real.

i paid 3,000 more in federal income tax thanks to the salt cap. many people are actually leaving high tax states thanks to that cap, so it’s not negligible.
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