Re:The K-shaped recovery
by dragonwriter on Monday September 28, 2020 @10:16AM
(#24616818)
> Taxation is just the price of the basket of services a government offers to its citizens.
No, those are user fees.
> We don't deduct prices of other goods & services (food, clothing, rent, transportation) from our salaries before paying taxes on them, do we?
Yes, we do, with a choice to take a simplified default amount.
But with SALT, I think the better argument is that the absence of the deductions (or limitations on them, which work the same way at some point) causes federal taxation to artificially incentivize low-tax state policy since it can switch policies from net expected positive to net expected negative value before to after consideration of federal taxation, whereas with SALT deeuctibility federal income taxation does not have any effect on the direction, only the magnitude, of expected value of state tax and spending policy.
No, those are user fees.
> We don't deduct prices of other goods & services (food, clothing, rent, transportation) from our salaries before paying taxes on them, do we?
Yes, we do, with a choice to take a simplified default amount.
But with SALT, I think the better argument is that the absence of the deductions (or limitations on them, which work the same way at some point) causes federal taxation to artificially incentivize low-tax state policy since it can switch policies from net expected positive to net expected negative value before to after consideration of federal taxation, whereas with SALT deeuctibility federal income taxation does not have any effect on the direction, only the magnitude, of expected value of state tax and spending policy.