Economics

Blue States Don’t Care About Taxes As Much Because They Just Deduct Them

Simply stated, greedy politicians in a state like California can boost tax rates and soothe anxious state taxpayers by telling them that they can use their higher payments to Sacramento as a deduction to reduce their payments to Washington.

What’s ironic about this loophole is that it’s basically a write-off for the rich. Only 30 percent of all taxpayers utilize the deduction for state and local taxes. But they’re not evenly distributed by income.

Source: The Federal Tax Code Should Not Subsidize Greedy Politicians in New York and California | International Liberty

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