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View Diary: Now it's Hannity talking secession (177 comments)

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  •  poor accounting (1+ / 0-)
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    high uintas

    State taxes are deductible on the federal return IF you itemize, which people who don't own a home generally don't. And even then, it's not a dollar-for-dollar offset or credit; it's a percentage based on whatever your tax bracket is.

    So if you increase the state tax by $100,  people save somewhere between $0 and $35 on their federal return. That's a net out of pocket of $65-100, which does hurt. It may be worth it to fund state services, but most of it does come out of workers' and retirees' pockets.

    If your legislators don't understand this, they have no business making tax policy.

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