It seems like federal taxes should be deducted from your earnings used to calculate state taxes. This "other way around" seems really strange to me.
This headline is somewhat misleading.<p>The Trump tax cuts were structured to the benefit of his base at the expense of his strongest opposition. This was done by severely limiting deductions for taxes paid to city, county or state, in effect, forcing double-taxation on wages paid to people in major cities.<p>This new proposal is less of a "windfall" and more of a return to the standard American practice of not doing double-taxation, which was removed by Trump to harm his opposition.