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#1 User is offline   Howsithangin 

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Posted 09 July 2019 - 04:47 AM

Low-Tax States Are Adding Jobs 80% Faster Than High-Tax States Due To Trump's Tax Cut & SALT Cap
May 24, 2019, 03:12pm
Chuck DeVore
FORBES.com

Job growth has been running 80% stronger in low-tax states than in high-tax states since the passage of the Tax Cuts and Jobs Act of 2017 in December 2017. Understanding why holds important lessons for policy, economics, and politics.

The new tax law scaled back the federal subsidy for high state and local taxes. Prior to the change in the tax code, most income tax filers who itemized their deductions could reduce their tax liability by calculating how much they paid in state and local taxes (SALT).

According to the Tax Policy Center, filers who itemized in New York took an average SALT deduction of $21,779 in 2016, the highest in the nation. The new tax law now limits that to $10,000 per household. For filers paying a marginal effective tax rate of 23.5%, this would result in their paying $2,768 more in federal taxes compared to what a similarly situated taxpayer in a low-tax state might pay—though, to be clear, most taxpayers across the nation have seen an overall reduction in their federal taxes, with larger tax cuts being seen in low-tax states.

As a result of limiting the SALT deduction to $10,000, income tax filers in high-tax states saw a relatively smaller tax cut, losing out on about $84 billion since the tax code was changed. With $84 billion less to invest, the pace of job creation in the 23 high-tax states has slowed relative to the low-tax states, with the data suggesting a shift of almost 400,000 private sector jobs may have occurred.

But since President Trump signed the Tax Cuts and Jobs Act of 2017 into law, the federal SALT deduction cap has had the economic effect of changing tax law in all 50 states simultaneously, making for a rare macroeconomic field test.

LINK

NOTE: Chart & Graph (sourced) in the link
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#2 User is offline   mjperry51 

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Posted 09 July 2019 - 06:56 AM

I'm shocked. . .
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#3 User is offline   MTP Reggie 

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Posted 09 July 2019 - 07:18 AM

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#4 User is online   Wag-a-Muffin (D) 

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Posted 09 July 2019 - 08:37 AM

Can't be true. I don't believe it is true so it isn't true.

I need a nuanced spin so that I can justify this in my little leftist brain.
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