A Constitutional Poison

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(Andrey Maximenko/Getty Images)

The tax deduction for state taxes is an assault on a great advantage of America’s federal system.




NRPLUS MEMBER ARTICLE

A
merica’s Constitution was a work of genius in many ways. One of those was a federal structure that left most government decisions to the states, with only limited and enumerated powers for the federal government. That allowed people to live according to local choice in the ways that suited them and their communities best. And it also allowed people who were dissatisfied with local government to move elsewhere.

In this structure of “competitive federalism,” one key area was state taxation: A state that wanted to attract more people and more capital need only lower their tax burden and provide a more …

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