Re:Vermont will cover $10K of expenses for people who move t...
by perl4ever on Thursday May 31, 2018 @11:09PM
(#17202303)
I would say this is triple taxation. Looking at how "double taxation" is used to refer to taxing at both corporate and individual level of public company profits, this is an additional burden on top of a two level system. Imagine getting taxed on the amount of taxes paid by a company you own shares of. State and federal levels are "double" in the first place.
Triple is a little hyperbolic, as you could probably best describe it with a number between 2 and 3 depending on the tax rate.
The argument for the deduction, which has always existed, is to prevent people from being double taxed. A higher-tax state may tax its citizens to pay for infrastructure or services, whereas a low-tax state relies on the federal government to pay for the same stuff. There are tons of people in poverty in a lot of southern lower-tax states. Who do you think pays for all of the government services these people need?
The tax plan was specifically designed to harm blue states and to make residents of blue states pay and even higher, even less balanced share of tax receipts in the country.