Why low state income tax red states should create state taxes with "redistribution" to get federal income tax reductions like blue states will get again.

Currently blue States like California and New York are getting ready to once again have their High state income tax people be able to deduct their state income taxes from the federal taxes before they pay federal taxes.

This basically means that red states are subsidizing the taxpayers state income taxes in the blue States like California and New York. It also means that it's a pain free tax for the residence of those States when those blue State Governors raise those taxes.

Now Donald Trump did reverse that in his tax bill that passed early in his administration but there's no doubt that the Democrats will reverse that and once again blue States like New York and California with massive state income taxes will be able to deduct state income taxes from their federal tax forms thus taking the money from the federal coffers.

So how do we handle this if we're a red State. Well the answer is simple. You create a high state income tax in all the red States and then in a state program called "redistribution of wealth" or whatever you want to call it you simply give the money back to the people that paid it.

Now of course this will allow those red States paying taxpayers to deduct the state income tax from their federal tax forms lowering their federal taxes. Of course this will probably be challenged in court and someone may say that this is not a real state income tax. But the fact of the matter is if they start getting into what qualifies as what type of redistribution of income and use of that income qualifies as a state tax it's going to be a real problem for those blue States so I don't think they'll win and it probably won't happen.

But this will have this will in effect make people in red States pay much less in federal taxes. So this is a way to make that happen. Frankly it's genius.