LETTER: Tax deductions and federal spending
Your Nov. 8 editorial, “Democratic hypocrisy on rich paying their ‘fair share’, ” states that the latest version of the “social infrastructure bill” includes an increase in the federal write-off for state and local taxes. It is now capped at $10,000.
However, according to a January report by the Rockefeller Institute of Government, eight states pay more to the federal government in taxes than they receive back and 42 states receive more or break even. Federal spending to states included individual payments and grants for anti-poverty programs, Social Security and Medicare, procurement and wages for defense contracting and military bases, along with other federal facilities.
In the study, those “high-tax blue states” — including New York, New Jersey, Massachusetts and Connecticut — end up paying more to the federal government than they got in return. The study indicates that New York state’s negative balance of payments for 2019 was $22.8 billion, worst in the nation followed by New Jersey ($10.3 billion) and Massachusetts ($9.9 billion).
It’s interesting to note that GOP Senate Minority Leader Mitch McConnell’s Kentucky gets $2.89 from the feds for every $1, almost three times what it pays to Washington. That’s the greatest “return” of any of the 50 states, according to the study. Something to consider.