Quote:
Originally Posted by PaulS
Not seeing #s that high. But if the fed. gov. limited the tax payment transfer to +-10% of taxes paid all that additional $ would stay in the blue states and over time would help wipe out that debt. The transfer are not obviously cash but includes payments to hospitals, rent, etc. Those all have a multiplier and add to the tax base. Kentucky gets 35% of their total tax rev. from the fed. government. I know it is an outlier and I said shouldn't be used as an example of the whole group but if those payments where less, Kent. would have a bigger defecit and have to cut back more services
|
"Not seeing #s that high."
I posted it.
https://yankeeinstitute.org/2021/09/...ing-to-report/
Let's say it's half that, Paul. Let's say it's $30,000 for every taxpayer. Where does that money come from?
As to your posts about tax shifts. Blue states, with higher state and local taxes, have given their residents a big break on federal income taxes, that people in red states don't get. Here's what I mean...Let's say you live in CT, I live in NH, and our financial picture is exactly the same. On federal income taxes, you've always enjoyed a big deduction in your federal taxes (which I don't get) because you pay high state taxes. Why should you pay lower federal taxes than me, just because you live in a blue state? That federal income tax deduction existed for decades, and it was BIG. Trump did away with much of it with the 10k SALT cap.
So any discussion of how unfair tax transfer from blue to red states is, must include a big adjustment for the historical benefit that residents of blue states enjoyed forever, until very recently.
In any event, that's not why CT is in serious financial trouble. We're in trouble for a very simple reason, we spent an absurd amount of money, more than we can ever have.