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by RickJWagner·8y ago·view on hn ↗
High-tax states like New York and California won't suffer too much. Their higher taxes have allowed them to build industries that attract people and raise property values.

It seems fair that the rest of the nation should stop subsidizing them. That'll allow smaller states to benefit for a while.

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It seems fair that the rest of the nation should stop subsidizing them.

The reality is the exact opposite of what you think. For every $1 New York pays in federal taxes, it receives $0.81 in federal spending. It is New York that subsidizes smaller states, not the other way around, and the proposed tax measure would only increase that inequality.