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From: mcal@ihuxb.UUCP (Mike Clifford)
Newsgroups: net.misc,net.politics
Subject: Re: State Tax Dedudction
Message-ID: <1042@ihuxb.UUCP>
Date: Fri, 31-May-85 08:58:44 EDT
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Posted: Fri May 31 08:58:44 1985
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> > 	How does every one feel about Regans idea of 
> > disallowing State Taxes as a deduction ?
> > 
> > 	Sounds like double Taxation to Me. Perhaps
> > we should all write our congressman.
> 
> Consider:  the marginal cost to a local government of each citizen
> is highest when the population density is highest. (else why are NJ, NY, NYC,
> CA, etc. the places with the highest local taxes?)  (these) people choose to
> ... pay more to
> their local governments in taxes than people who live more rural areas.  They
> receive more services from their local governments as a result: better
> police protection, fire departments, garbage pickup, etc.  
>      Up till now, the federal government has been forcing people who live in
> low-local-tax areas to subsidize the taxes of the people who choose to live
> in the high-local-tax areas.  Disallowing state taxes as a deduction would
> stop this.  Do you really think that it was fair for you to force all of the
> people in the midwest to help pay your local taxes?  I don't.
> -- 
> Jeff Sonntag
Am I just completely dense (don't answer that!)? How is it that the low-local
tax areas are subsidizing the high-local-tax areas?  Everyone who itemizes
gets to deduct their state tax.  Where does this subsidy business occur?

Mike Clifford