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Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!mhuxt!houxm!vax135!timeinc!phri!lonetto
From: lonetto@phri.UUCP (Michael Lonetto)
Newsgroups: net.misc,net.politics
Subject: Re: State Tax Dedudction
Message-ID: <248@phri.UUCP>
Date: Mon, 3-Jun-85 21:34:20 EDT
Article-I.D.: phri.248
Posted: Mon Jun  3 21:34:20 1985
Date-Received: Thu, 6-Jun-85 01:28:23 EDT
References: <735@mtuxo.UUCP> <896@mhuxt.UUCP> <1042@ihuxb.UUCP> <899@mhuxt.UUCP>
Organization: Public Health Research Inst. (NY, NY)
Lines: 37
Xref: watmath net.misc:8056 net.politics:9244


>      It works like this:  Person A, living in NYC, pays high local taxes.
> Under current tax laws, they deduct this amount from their gross income,
> reducing the amount of federal taxes they pay.  The net effect is that
 their local tax costs them (1 - their marginal tax rate) * (nominal local tax)
> instead of the full amount.  That difference is money which the federal
> government doesn't receive; they know this will happen, and adjust tax rates
> so that they get the total amount of money they want anyway.  This means,
> of course, that federal tax rates must be higher than they would be otherwise
> to make up the difference.  So all of the farmers in Nebraska, receiving 
> *none* of the benefits which person A receives for his local taxes, have to
> pay higher federal taxes to make up for person A's local-tax deduction.
>       Those of you who think taxes should be *fair* should like this since
> it *is* more fair than the current setup.

> Jeff Sonntag
> ihnp4!mhuxt!js2j
>     "It doesn't matter what you wear,
>      just as long as you are there." - Martha and the Vandellas

*** REPLACE THIS LINE WITH YOUR FOOT ***

Dear Farmer,

Waaal, I s'poses nonayer Nerbrasky farmers gits low intrsrt lones from
th' Fed'rl Guvmnt, eh?  I s'poses thet nonathem Sunbelt States with
allerther Govmint contracts fer miltery and aerospace industries is
bein subsidyized, eh?  Maybe we'all should jest ask all the poor people
to move to Nerbrasky, eh?  They're gonna be MIGHTY unhappy here, come
tax refr'm.  You think the rich people gonna keep on payin them NY
taxes if'n they cain't deduct em?  NY has always been ofa like mind to
Ronnie Raygun -only tax the rich as far as they can deduct it- I don'
xpect's gonna change now.  Enjoy the corn.

Michael Lonetto  PHRI NYC

(lonetto@phri)