You do not read well do you. The tax cut provisions reduced
Posted on: January 29, 2018 at 11:37:37 CT
DHighlander NWMSU
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a number of deductions. One of those deductions was for state income taxes paid. If you and I both made $100k with identical deductions we would pay the same in federal taxes. But If I lived in California and paid $13k in state taxes and you only paid $6k in Missouri you would be paying a higher rate in federal taxes due to the state tax deductions.
So yes, states with lower tax rates have been subsidizing those living in higher taxed states.