The tax code favors working families of low to moderate income with young children. This was true before the tax law change, and is especially true now, particularly with the doubling of the Child Tax Credit and the vast increase in income eligibility for the credit.

How do higher income single taxpayers fare under the new law? In this scenario, a single taxpayer without dependents has earnings of $109,604 and other income of $1,480. Itemized deductions are $10,061 in state and local taxes (SALT) and $6,638 in other itemized deductions (such as mortgage interest and charitable contributions), for a total of $16,699. Here’s how the new tax law applies to this situation:

Description	2017	2018	Change
Income	111,084	111,084
Itemized	16,699	16,638	-61
Pers. Exempt.	4,050	0	-4,050
AGI	90,335	94,446	4,111
Tax	18,320	16,952	-1,368

The SALT limitation of $10,000 and the loss of $4,050 in personal exemption deductions increases this taxpayer’s taxable income by 4.55%. The change in tax brackets makes up for this, cutting their net tax bill by 7.47%. The average tax rate as a percentage of AGI is reduced from 16.49% to 15.26%

Let’s tweak this scenario for a higher-taxed state by increasing the state and local taxes by $5,000, to $15,061. The result of this change are:

Description	2017	2018	Change
Income	111,084	111,084
Itemized	21,699	16,638	-5,061
Pers. Exempt.	4,050	0	-4,050
AGI	85,335	94,446	9,111
Tax	17,070	16,952	-118

It is little wonder that folks that live in high tax states are squawking. An alternative view is that taxpayers in low-tax states have been subsidizing the higher-tax states when it comes to federal individual income tax revenues.