The Senate Republication tax plan will hit middle- and upper middle-income Illinois residents particularly hard by eliminating deductions for state and local taxes. President Trump argues that's it's not fair that those of us in high-tax states get to deduct more than those who live in low-tax states. Trump argues a tax payer earning $100,000 living in Florida will pay more in federal income taxes because Florida has no income tax and lower property taxes than a homeowner in Illinois earning $100,000 because of the deduction of income taxes and high property taxes.
However, it is easy to find the ranking of states that are most dependent on federal spending. As it turns out, the economy of Florida is ranked No. 22 in its reliance on the federal taxes, while Illinois is ranked No. 47.
It appears that a low-taxed state like Florida is surviving off the hard work of states like Illinois that grow their economies by using state and local taxes to improve their state so business can grow rather than relying on federal tax money. Is it fair that our tax dollars support low-tax states like Florida?