What exactly is this author trying to claim here? That states with more individuals at lower income levels “benefit” the least from Federal income tax elimination because the federal government currently takes fewer total dollars from individuals in that state due to more people at lower federal tax rates?
This is just a really roundabout way to try to blatantly mislead people into thinking that federal income tax elimination will disfavor some states that more heavily voted for Trump, right?
Federal income tax rates apply the same to individuals across any state (without discussing SALT which this author doesn’t mention). So this would only directly impact individuals, not states at all.
In fact, states with a higher proportion of individuals at lower income levels may indirectly benefit MORE from their residents keeping more of their own money if you consider that lower income people often spend a higher proportion of their paychecks, putting more into things their state probably taxes.
Please correct if I’m wrong. This media spin that “anything Trump does is bad” is exhausting.
Posted by regulationinflation