General Discussion
In reply to the discussion: the lies of David W, Corn [View all]hfojvt
(37,573 posts)on much lower incomes.
For example, the poverty rate in Washington DC is over 20%. This in spite of it's high median income. Many more people are perhaps near poverty. Most of those people survive, at least for a while.
Deducting state income taxes happens to be a huge benefit to the rich.
In 2009, 7024 filers with AGI greater than $10,000,000 deducted their state income taxes. Their total deductions were $15.4 billion for an average deduction of $2.19 million.
As for red states with low tax rates. Well, you might check this out http://journals.democraticunderground.com/hfojvt/159
In California, the top 1% pays 9.8% in state taxes. The federal deduction saves them 2.3% making their total effective tax rate 7.4%. Compare that to a red state like Louisiana where Bobby Jindal brags about his tax cuts (to the rich). In Louisiana, the poorest 20% pay a tax rate of 10.4%. In Alabama, the poorest 20% pay a tax rate of 10.2%. In Utah, the poorest 20% pay 9.3%.
Yeah, those low tax red states.