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Jun 19, 2025  |  
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Dominic Pino


NextImg:The Corner: Don’t Expand the SALT Deduction. It Only Encourages California

The SALT deduction makes it easier for fiscally irresponsible states to dodge accountability with voters. By allowing taxpayers to write off their state and local taxes on their federal returns, the SALT deduction shields residents of high-spending states from bearing the full burden of the government they have. Last week, I wrote about the example of New York, in contrast with Florida, based on an article by David Ditch of the Economic Policy Innovation Center.

Ditch has a new article out today about California, and the numbers are just as shocking. California is by far the most populous state, so it obviously has the largest state budget. But just how much larger is it than those of other big states?

The federal government should not eat part of the cost of these state-level failures by allowing California’s taxpayers to write off their state and local taxes. If Californians want to govern themselves this way, they should pay for it, and Republicans especially should not feel any obligation to help them.