Texas does not have a state income tax and California has a very large state income tax. Under present law the California resident can deduct state income taxes from their adjusted gross income.
If the California resident and I have an identical tax return with the exception of his deduction for state income tax I will pay more in Federal Taxes than the Californian. In effect I am subsidizing California Tax Payers and the government of California. If that resident of California is in a 25% tax category and paid 10,000 dollars in state income taxes his Federal Taxes are 2,500 dollars less than mine in Texas.
This is not right!
“If the California resident and I have an identical tax return with the exception of his deduction for state income tax I will pay more in Federal Taxes than the Californian.”
That is not necessarily true.
You also could deduct your sales tax paid, property tax, excise taxes on your boat and truck, the school bond etc.
It’s entirely possible, with my property tax capped by Prop 13, you could have more SALT deductions than me. IN fact the state of Texas, due to its wealth, is the 3rd largest recipient (net) of the SALT deductions.