Scott Rasmussen's Number of the Day From Ballotpedia
By Scott Rasmussen
October 30, 2017: Eighty-eight percent (88%) of the tax savings from deducting state and local taxes goes to those earning $100,000 or more.[1] Under current law, the benefits total $1.3 trillion over the coming decade.
Republicans in Congress took preliminary steps to eliminate this deduction last week as part of a broad tax reform effort. If the change becomes law, it would have the biggest impact on high-tax states like New York, New Jersey, Pennsylvania, and California.
A longer-term impact, however, might be to reduce spending by state and local governments. That’s because federal deduction provides a subsidy to such governments. If the taxpayers in each state have to pay the full burden of their state or local government, there could be pressure to reduce spending.
That pressure would come from competition with other state and local governments. More than 35 million Americans move each year. If state taxes are no longer deductible, those moving could find high-tax cities and states somewhat less appealing than they are today.
Each weekday, Scott Rasmussen’s Number of the Day explores interesting and newsworthy topics at the intersection of culture, politics, and technology.
- October 27, 2017 – 51 percent of Chicago residents believe relations with police are good
- October 26, 2017 – 1,300 dollars spent on Amazon by average Prime member
- October 25, 2017 – 10 countries have more economic freedom than U.S.
- October 24, 2017 – 43.7 million immigrants live in United States today
- October 23, 2017 – 28 percent of American adults use same password for most or all online accounts
- To see other recent numbers, check out the archive.
Scott Rasmussen’s Number of the Day is published by Ballotpedia weekdays at 8:00 a.m. Eastern. Columns published on Ballotpedia reflect the views of the author. Bookmark this page to check out the latest update.
Scott’s new book, Politics Has Failed: America Will Not, came out on May 9.
Ballotpedia is the nonprofit, nonpartisan Encyclopedia of American Politics.
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