Try to gather all the facts as tax reform plans advance
The writer of a letter to the editor titled “Low tax states should not foot the bill for New York” asks, “Why should we expect low tax states to subsidize us” by allowing a state tax deduction. He feels that Florida or Texas (his picks, not mine) would pay more taxes with the new tax plan if New Yorkers could continue to deduct state and local taxes.
This logic makes a great case, but only half a case. In taxes, payments are not the whole picture.
Right now, Florida and Texas get almost enough federal money back to ZERO their income tax account, 97 cents back on the dollar for Florida and 94 cents for Texas in federal spending in those states. New York, you might ask? We get federal spending in our state of only 79 cents for every dollar they collect from us. I’m no math whiz, but I think that without taking that into account, New York will continue to pay the bills for other states, not the other way around.
FYI, the IRS collected almost $270 million from New Yorkers in 2015, using the 15-cent difference between us and Texas, New Yorkers should have gotten another $40 million in federal funds here, if things were truly equal.
Side note: I’m a middle income person who deducts taxes, and yes, I will be paying more tax with this plan, I’ve done the math.
My advice for all citizens, don’t just take the word of only one person or political site, do your homework and check out their claims. If you get involved, you’ll never fall victim to half-truths and alternative facts.