Taxation: A Burden or Benefit?

This chapter examines the impact of state and local tax deductions on federal taxes, particularly in high-tax states such as California and New York following the $10,000 cap established by the 2017 Tax Cuts and Jobs Act. It highlights the complexities and disparities in tax systems across the U.S., revealing how high property taxes can exclude lower-income demographics while benefiting affluent neighborhoods. The discussion also critiques various tax incentives, arguing that they often inflate housing prices and do not effectively assist those who need it most.