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From: slag@charm.UUCP (Peter Rosenthal)
Newsgroups: net.misc,net.politics
Subject: Re: State Tax Dedudction
Message-ID: <676@charm.UUCP>
Date: Fri, 7-Jun-85 11:18:51 EDT
Article-I.D.: charm.676
Posted: Fri Jun  7 11:18:51 1985
Date-Received: Sun, 9-Jun-85 03:00:30 EDT
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Organization: Physics Research @ AT&T Bell Labs Murray Hill NJ
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Xref: watmath net.misc:8077 net.politics:9327

The only problem with this analysis is that it assumes that
all regions get the same share of federal money.  New York,
for instance supplies much much more money to the federal
government in the form of taxes than it gets back in the
form of government programs.  

In principle, if all the federal money benefits all citizens
equally,  then I would agree that its not fair to choose to
live in a place with high local taxes and services and expect
to be relieved of some of your federal tax burden.

But the fact is that it will be very bad for the country if
state taxes can't be deducted.  It will be a disaster for 
education, because there will be tremendous pressures on
state and local governments to cut taxes.  School taxes are the only
taxes that people get to vote on directly.  State governments
will have to spend more money on college programs to make up
for all the cuts in federal student support and grants.
Secondary schools will be in direct competition 
with state colleges  for funds that aren't even adequate
now.  

The last thing this country needs is to undermine the
educational system any more than it already has.