Arthur Laffer and Steven Moore have penned an interesting article in the Wall Street Journal that gauges the impact of the cap on state tax deductions in high tax states.
Their conclusions should frighten high-tax, big-spending liberals in blue states across the country.
In the years to come, millions of people, thousands of businesses, and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states. This migration has been happening for years. But the Trump tax bill’s cap on the deduction for state and local taxes, or SALT, will accelerate the pace. The losers will be most of the Northeast, along with California. The winners are likely to be states like Arizona, Nevada, Tennessee, Texas and Utah.
For years blue states have exported a third or more of their tax burden to residents of other […]