Posted on 11/17/2017 6:56:41 AM PST by Mariner
WASHINGTON (Reuters) - From Pataskala, Ohio, to Conroe, Texas, local government leaders worry that if Republican tax-overhaul plans moving through the U.S. Congress become law, it will be harder for them to pave streets, put out fires, fight crime and pay teachers.
A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.
Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.
The proposed repeal of the state and local tax (SALT) deduction is part of an "assault on local governments" by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.
"My hope is that we look at being thoughtful about what we're doing and not ram something through just to get something done before the year is out," Kautz said of the plan being rushed through Congress by her own party.
In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government's role at that level is limited.
Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.
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A bill being debated in the Senate, with Republican President Donald Trump's support, would kill the SALT deduction entirely for individuals and families, although businesses would keep it. The fate of that bill is uncertain.
(Excerpt) Read more at ca.news.yahoo.com ...
In 1913 the PROGRESSIVES insisted that taxing money used to pay taxes was immoral and therefore ensured SALT deductions were in the very first income tax legislation.
In 1856 when the first bill for an income tax was introduced (overturned by the courts as unconstitutional), it had language to specifically include SALT deductions so as not to undermine state and local governments ability to provide basic services.
And, if SALT deductions are bad, why do all corporations and all businesses get to keep them?
Tax revolt is good.
Let the liberal bastards die in their own fetid excrement.
There is no such thing as less likely for me.
ML/NJ
The proposed repeal of the state and local tax (SALT) deduction is part of an “assault on local governments” by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.
“And, if SALT deductions are bad, why do all corporations and all businesses get to keep them?”
There should be *no* taxes on businesses. Taxes on business is just passed on to others. A corporation is just a legal fiction. Tax the people who own, are employed by, or work for the business.
Why do Texans (no state income tax) have to subsidize the spending by the hard-Left governments of California, Illinois, Massachusetts, New Jersey and New York?
Put everyone on the same level playing field - and let the high-spending Leftists justify what they are spending their constituents’ money on. No more “oh, don’t worry, you get to deduct your payments to the state on your 1040” - enough of that HUGE economic distortion.
Besides, maybe if the mask is ripped off of these Leftists and what they do, voters will promote them to the private sector and elect people who are more responsible?
THAT is why we want the SALT deduction to go away. Any argument in favor of it is just an argument for excessive, unaccountable spending that ALWAYS benefits Leftists and Leftism.
“Let the liberal bastards die in their own fetid excrement.”
You must be talking about the Congressional Republicans.
“It is the removal of subsidies for local governments.”
Absurd.
It’s actually the other way around...tax breaks at the local level are subsidy for the Master Taxer...Congressional Republicans.
I assure you the local plumber or landscaper pays taxes.
Blue states will start flipping to red
faster than you can say H&R Block.
They’re whining here in Jersey about losing the deductions for state and local taxes, but I don’t hear that much whining about the taxes that CAUSE the whining!
“less likely to support future local tax increases”
The operative term there. Let’s spend OTM. Saw it here recently. The discussion at the town meeting was whether to approve over 4 million to build an airport terminal to replace the current one. The airport serves few people and the hope is that an expanded state of art terminal complex would attract fliers. It is a waste of money which is not supported by the local residents. But, the operative phrase at the meeting, and the one that got this albatross approved was: 90% of the money is coming from the state and federal government via grant’s.
Until you or your parent is denied a Social Security check, medical treatment, or the fire department in your town shuts down.
You folks defending this abortion of a tax bill have no idea how badly it will screw millions in the middle class. Once these deductions are gone, they are gone forever.
“to undermine state and local governments ability to provide basic services”
That is a progressive excuse and a canard.
Progressives were and always are merely trying to protect the progressive high taxes imposed in the jurisdictions they are able to impose them. To be able to “provide basic services”? No. It is done to enable all the extra programs they attach as “important” attachments to basic services, and to support their government workers unions demands, and extend local progressive regulatory controls the way they do at the national level.
I would give one temporary caveat - for the next few years - to the demands to keep SALT deductions. I would temporarily keep the property tax deductions. They are taken in jurisdictions that are not Liberal high progressive tax areas, not just the high tax states alone - and we could use some support getting a 1st start at eliminating SALT deductions altogether.
I say that for realistic political reasons, not that on principle alone the SALT deductions should be there. But to me the Conservative principles that say the SALT deductions should not be there also say we should have flat, universal tax rates with ZERO deductions, exemptions, exclusions or credits; just a simple tax on income/revenue everyone pays, period. So all compromises with THAT in the current tax bill would be out the window in my ideal. But we are not there today and do not have the votes for that. So I would agree to dumping the deductions on state & local income and sales taxes, and keeping the property tax deductions, for now, if it would help get some “tax reform” passed.
The master taxes is the congressional Democrats that vote in union for taxation for generations. As usual matinee you are duplicitous.
You deduct your sales and real estate taxes, don't you? Why should we subsidize that?
I assure you the local plumber or landscaper pays taxes.
People pay taxes. Corporations do not.
“Why do Texans (no state income tax) have to subsidize the spending by the hard-Left governments of California, Illinois, Massachusetts, New Jersey and New York?”
Texas is the 3rd largest recipient of net SALT deductions in the nation.
Several million taxpayers take these deductions in Texas, for property taxes, excise on boat and truck, school bonds and State Sales Taxes.
Additionally, Texas receives $1.50 in Federal Expenditures for every dollar paid in Federal Taxes.
How do you figure the freeloaders in Texas are subsidizing hard left governments in CA, IL, MA, NJ and NY?
Especially when precisely the opposite is true? They subsidize the Taxpayers in Texas.
You don’t take the deductions in NJ?
No they won’t. Just the opposite will occur. The GOP will lose the House in 2018. The Republicans have taken care of their donors and corporations - and have screwed the middle class. 80% of these tax cut benefits go to corporations. We are going to be footing the bill for Facebook, Apple, and Google.
The taxpayers should revolt. Should have been done a long time ago. For me, it comes down to paying for shit that we’re forced to pay for, IE illegal immigrants and refugees. I realize and accept that some of my money has to go to people and places I may not agree with, and I’m ok with that. But to be forced to pay for 3rd world savages and their spawn, just so the democrats can have their voters and the republicans can have their cheap labor is pure, 100% bulls*t.
So, if the revolt happens, let it happen.
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