As President Bush works on a tax overhaul, some conservative activists are urging the President to get rid of the federal tax deduction for state & local income taxes. That'd hit taxpayers in almost every state. But it would hurt most where incomes are higher and state and local tax burdens are higher. Blue states -- those that voted for John Kerry -- top that list.
The blue states of California and New York, for instance, have tax rates of 9.3% and 6.5% respectively. But red states Florida and Texas have no state income taxes. (LAT via Yahoo!)
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