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Josh McCabe @JoshuaTMcCabe
, 5 tweets, 2 min read Read on Twitter
I'm so tired of these "SALT deduction cap as war against blue state" claims. They are 100% without merit. Let's break down the three main reasons why the cap effects some state more than others using examples cited here. Thread. bloomberg.com/news/articles/…
1) NY and CA residents have much higher incomes than MS and WV residents. Here's GSP per capita. NY and CA are two of the richest states in the country. MS and WV are the two poorest states. Unless you think the rich should pay less than the poor, the SALT deduction is bad.
2) NY and CA are more wealthy than MS and WV. Here's median home value (main source of wealth) by state. NY and CA are two of the wealthiest states in the country. MS and WV are the two least wealthy states. Unless you think the wealthy should pay less, the SALT deduction is bad.
3) There's pervasive myth that NY/CA have higher taxes than MS/WV. Wrong. Here's state and local revenues as % of GSP. Burden is higher in MS than NY. It's higher in WV than CA. Differences in the effects of SALT deduction cap have nothing to do with tax effort in these cases.
If you're a journalist, pundit, or think tank fellow reading this, please stop perpetuating these myths. Doing so stigmatizes the residents of poor states for the cause of helping the richest people in the richest states under guise of phony partisan talking points.
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