1.Prior to 2018, people could deduct the taxes they pay to their home state before calculating their...
Question:
1.Prior to 2018, people could deduct the taxes they pay to their home state before calculating their federal tax bill. So, for example, if you earned $100,000 and paid $20,000 in state taxes, the federal government would only tax you as if your income was $80,000. The tax law passed at the end of 2017 reduced that deduction to a maximum of $10,000. In 2018, we nevertheless saw a growth in population in two high-tax states, New York and California. One observer suggests that this means that the elimination of the deduction had no effect on people’s residential choices. Do you agree?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles Of Economics
ISBN: 9780135161104
13th Edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
Question Posted: