Comments on: Repealing the State Income Tax Deduction

By: bryan

bryan — Tue, 07 Dec 2004 00:40:11 +0000

Aside from the impact of the reform, however, it's unclear why the federal taxpayer should subsidize high tax rates at the state level. By allowing this deduction, the federal government actually encourages higher state and local taxes, since local leaders can use the deductability of the tax as a selling point. It's unclear why the federal taxpayer should subsidize this? How about the federal taxpayer is also a local and state taxpayer? We're getting it from every direction and you want to increase the federal share? Pathetic. And the argument that local leaders can use deductability as a selling point is laughable. That's why so many corps are created in Delaware.

By: bryan

bryan — Tue, 07 Dec 2004 00:31:04 +0000

Actually, for smaller states like S.C., state and local taxes are often more necessary than they are in the big liberal states like NY and Calif. And yet we'd be forced to pay twice.

I'm as fiscally conservative as the next guy, but you start taking away my state and local tax deduction and I'm going to start voting some people out. Period.

By: dw

dw — Mon, 06 Dec 2004 23:02:54 +0000

I know it sounds all great and STICK IT TO THEM LIBERAL COMMIES to you guys, but there are a number of Red States, like Colorado and Oklahoma, with some nasty state income tax rates.

And hey, the state sales tax deduction is now available to residents of states without an income tax (Texas, Washington, Florida). IIRC, sales tax rates have increased significantly in the last twenty years in those states even without the exemption.

The sales tax deduction, BTW, is only available to those who itemize, and I seem to recall the state income tax deduction is available to everyone.

By: A Stitch in Haste

A Stitch in Haste — Mon, 06 Dec 2004 16:03:00 +0000

Should State & Local Taxes Be Deductible?
To ask, as OTB's James Joyner does, why low-tax states should subsidize high-tax states, misses the point entirely. States don't pay income tax -- people pay income tax.

By: Attila (Pillage Idiot)

Attila (Pillage Idiot) — Mon, 06 Dec 2004 14:22:54 +0000

By: Arguing with signposts... » Repealing the State Income Tax Deduction

Arguing with signposts... » Repealing the State Income Tax Deduction — Wed, 31 Dec 1969 18:00:00 +0000

[...] ust now. And it would be even greater if the feds would get their hands out of my pocket. Outside The Beltway : Repealing the State Income Tax Deduction — Bryan S. @ 7:36 pm | Fi [...]