The Soapbox

hoolstoptheheels

Joined: 01/04/2001 Posts: 27031
Likes: 34310


There’s a reason why the highest SALT states get the


Lowest returns on theif federal taxes, getting back less than $1 per $1 contributed, as opposed to places like Alabama, which get back well above $1 on each $1 spent. Blue leaning New Mexico gets back the most, so it isn’t partisan.

Money is fungible, and the overlap in the services provided by these different states is very significant. The slack in low tax states is picked up by the federal govt.

Whether it’s state income taxes or federal income taxes, it’s income taxes to the government, and the SALT deduction always provided relief from the double taxation impact, and recognition that those states tend to place smaller per capita demands on the US treasury.

I know you don’t like this because it is the blue leaners tending to pay the most in SALT, but this isn’t complex, and it shouldn’t be ideological. And it isn’t a perfect red-blue issue anyway - there are blue states among those relying most heavily on the feds rather than themselves.
[Post edited by hoolstoptheheels at 11/17/2021 1:58PM]

(In response to this post by Hoodafan)

Link: https://www.moneygeek.com/living/states-most-reliant-federal-government/


Posted: 11/17/2021 at 1:53PM



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