[awinder]

At the end of the day I think it matters because high tax states have already been subsidizing red states and one of the pressure release valves was that they weren’t taxed twice on the same income. I.e:

https://www.apnews.com/2f83c72de1bd440d92cdbc0d3b6bc08c

So you remove this pressure valve and skew those numbers to an even wider margin and you have, I would say justifiable, consternation about what we are doing here when the people who have been paying the bills are asked to pay more.

[jfk13]

If the deduction is removed, presumably the tax rate could be adjusted downwards to compensate.

Arguably, it would make more sense to allow a deduction on state income tax for federal tax paid. That way the federal tax -- which (in theory, at least) pays for services that benefit all states -- is imposed consistently across all the states. Individual states can then decide how much to tax their citizens to pay for the state's local services, without skewing how the federal tax burden is applied.