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From: hutch@shark.UUCP (Stephen Hutchison)
Newsgroups: net.misc,net.politics
Subject: Re: State Tax Dedudction
Message-ID: <1416@shark.UUCP>
Date: Tue, 4-Jun-85 18:59:07 EDT
Article-I.D.: shark.1416
Posted: Tue Jun  4 18:59:07 1985
Date-Received: Thu, 6-Jun-85 08:39:01 EDT
References: <735@mtuxo.UUCP> <11200@brl-tgr.ARPA>
Reply-To: hutch@shark.UUCP (Stephen Hutchison)
Organization: Tektronix, Wilsonville OR
Lines: 30
Xref: watmath net.misc:8061 net.politics:9269
Summary: 

In article <11200@brl-tgr.ARPA> ron@brl-tgr.ARPA (Ron Natalie <ron>) writes:
>> 
>> 	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.
>
>What ever gave you the idea that double taxation is prohibitted?
>
>If it were, I would be deducting the FICA tax, gasoline tax,
>excise tax, tax on my phone bill, etc...
>
>-Ron

Double taxation IS prohibited, as far as I know.  However, that is NOT
what RayGun would be instituting.

Double taxation is the practice of applying a tax to monies on which that tax
has already been paid.  So, for instance, if you had to pay taxes on your
tax refund, then those monies would be doubly taxed.

If your state taxes your federal refund monies AND doesn't let you deduct
your federal taxes from your gross income before figuring state tax, then
they are doubly-taxing you.

Further discussion of the nature of taxes can be carried on in net.taxes
which nobody reads after April 14th anyway.

Hutch