WASHINGTON (AP) — Republican leaders have spent months promoting the myth that red low-tax states are subsidizing blue high-tax states because of the deduction for state and local taxes. An Associated Press Fact Check finds it's actually the other way around. High-tax, traditionally Democratic states (blue), subsidize low-tax, traditionally Republican states (red) — in a big way. Republicans are trying to eliminate the deduction as part of the sweeping tax package working its way through Congress. They added back a deduction for up to $10,000 in property taxes, in a concession to Republicans from high-tax states such as New York and New Jersey. California Republicans are pushing to extend the deduction to local income taxes, too.
