Thursday, June 20, 2019
Forbes, Low-Tax States Are Adding Jobs 80% Faster Than High-Tax States Due To Trump's Tax Cut & SALT Cap:
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.
Since taxpayers in 27 states, led by Texas and Florida (neither of which has a state income tax), have average SALT deductions under the $10,000 cap, it’s unlikely there will be much of a political appetite in Congress to restore the full federal subsidy for high-tax states. Rather, if political leaders in states accustomed to taxing and spending far more than their more frugal peers wish to participate in higher rates of job creation, they should reform their own fiscal houses, rather than expect their neighbors to subsidize their high-spending ways.