There is zero reason for the Feds to subsidize and distort incentivize to encourage states to increase their tax burdens. SALT has always been one of the most corrupt tax breaks (mortgage interest being another).
No, it's very bad.
> There is zero reason for the Feds to subsidize and distort incentivize to encourage states to increase their tax burdens.
That seems like a reasonable position, but SALT doesn't do that; quite the opposite, it keeps federal taxation neutral in terms of incentives for state and local taxes. Not deducting state and local taxes distorts incentives by creating a federal tax disincentive to state/local tax-funded programs that produce a net economic gain. I've written up a simplified scenario illustrating this in a recent prior discussion on HN: