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updated: 11/14/2017 11:20 AM

Loss of deductions hurts most-productive states

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The Republican Party is so anxious to lower taxes for the top 1 percent that they include in their bill the elimination of the deduction for state and local taxes (SALT) to help pay for lower taxes for the wealthy. These deductions are heavily used by the middle class.

The stated logic for eliminating these deductions is that high tax states like California, Illinois and New Jersey used the deductions to lower the amount of federal taxes paid and the federal taxes paid by states with no or low SALT taxes are being used to support these states. However, it is easy to find the ranking of states that are most dependent on federal spending. As it turns out the economies of Republican dominated states are the most dependent on your tax dollars while paying the least in federal income taxes.

The states whose economies are the least dependent on receiving federal tax dollars are California, Illinois and New Jersey ranked 46, 47 and 48 out of 50. These states are the least dependent on your tax dollars. The states whose economies are most dependent on your tax dollars are Mississippi Alabama and Maryland and have Republican dominated state governments with low state taxes.

It appears that the low-taxed, Republican-dominated states are surviving off the hard work of states that grow their economies by using the state and local taxes to improve their state so business can grow rather than relying on federal tax money.

Paul Love

Wauconda

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