Quote:
Originally Posted by spence
But those high deductions are still paying a disproportionate amount of taxes. This is why the studies show Red states are on average consuming more Federal dollars than they provide. You're tax deduction theory is already factored in...
|
But they would be paying even more federal taxes if they didn't have the higher deductions. What is being subsidized, is the high taxes of those who have to pay in liberal spending states. It makes it more palatable to taxpayers in states with the high taxes required to pay for programs if they can deduct high property taxes to defray the federal tax burden. It makes it a little more likely that tax payers in high tax states will complain about excessive state spending if they can't buffer that with federal deductions.
But, even though money is recouped back to the state because of federal deductions, those high tax states still manage to overspend and get into unsustainable debt.
Threaded Mode