Prior to 2018, state and local taxes (SALT) could be fully deducted when calculating taxable income for the federal income tax. Starting in 2018, the SALT deduction was limited to $10,000.

a. Who benefited most from the unlimited SALT deduction—residents of high-tax states like California and New York or residents of low-tax states like Florida and Texas? 

b. How do you think the limitation of the SALT deduction affected the migration of people among the states? 

c. How do you think the limitation of the SALT deduction affected the propensity of state and local governments to raise taxes?