Posted on 10/23/2017 7:11:58 AM PDT by davikkm
“According to the Joint Committee on Taxation, more than 88 percent of the benefit of state and local tax deductions accrued to those with incomes in excess of $100,000 in 2014, while only 1 percent flowed to taxpayers with incomes below $50,000.[21]”
https://taxfoundation.org/state-and-local-tax-deduction-primer/
Very deceiving.
If you live in parts of NY, IL, NJ, CT, CA, or other states, and you make $101,000 per year, you not "wealthy" or even upper middle class. Your property tax bill alone can exceed $10-15K a year - easily.
When Congressmen from high tax states floated the idea of an income cap (I forget what it was exactly), below which many middle class taxpayers would be protected, Paul Ryan and the Ways and Means Committee told the media "no good." It would not "generated the revenue they need" to pay for the corporate tax cut.
The Washington Post is reporting there is some sort of compromise reached, but they won't release any details. I suspect that is because it is lousy news and they can't stand the flak from the voters. The details probably won't come out until it is too late to change it.
But an updated study released this week finds that millions in the middle class also could be affected by the repeal of the tax break. The study, conducted by the Government Finance Officers Association using IRS data, found that nearly 40% of tax filers making between $50,000 and $75,000 in 2015 claimed the deduction. That is nearly 7.6 million households. Of those making between $75,000 and $100,000 (6.9 million households), 53% claimed it, as did 76% of those making between $100,000 and $200,000 (13.9 million households).
What pays for the corporate tax cut is the revenue generated by the corresponding increase in GDP. That’s the way it worked with the Reagan and Kennedy tax cuts. Trump actually had a number x dollars in revenue per % increase in GDP. It was over a trillion per percent increase in GDP.
Apparently Ryan and many others can’t comprehend that.
Tax reform is the #1 reason I voted for Trump, I want to see 5%-6% GDP. It’s our only hope to fill the bubble before it bursts.
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