As the Trump tax cut was being debated, California’s Gov. Jerry Brown called the bill “evil in the extreme” and fumed that it would “divide the hell out of us.”
Millions of people, thousands of businesses, and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states. But the Trump tax bill’s cap on the deduction for state and local taxes, or SALT, will accelerate the pace. The losers will be most of the Northeast, along with California.
High earners in places with hefty income taxes will bear more of the true cost of their state government. Also in big trouble are certain States where the overall state and local tax burden (especially property taxes) is so onerous that high-income residents will feel the burn. On the other side are nine states—including Florida, Nevada, Texas and Washington—that impose no tax at all on earned income.
No comments:
Post a Comment