The state and local tax deduction has become a major stumbling block for comprehensive federal tax reform that would boost economic growth. Congress should eliminate this outdated, unfair, and destructive give-away to bloated state and local governments. The state and local tax deduction subsidizes high-tax and high-debt states with most of the benefits accruing to wealthy taxpayers. It thereby encourages states and localities to raise taxes higher than they otherwise would. It also encourages growth in government through public-sector provision of what should be private services, because the deduction allows states to alleviate their own residents’ state and local tax burden by hoisting it upon federal taxpayers.
Please join us as our panel explores the impact of the state and local tax deduction on state policies, federal revenues, and taxpayers across state borders. Find out how much the average taxpayers’ federal bill could be lowered by eliminating these harmful deductions.