That was a huge tax savings for my small business located in CT.
FReegards!
Posted on 06/25/2019 2:21:35 PM PDT by Tolerance Sucks Rocks
Ever since the Tax Cuts and Jobs Act passed in late 2017, Democrats and a few Republicans have decried how the law’s $10,000 cap of the state and local tax deduction harms schools, local communities, home values, first responders, and middle-class families. Fast forward almost two years later and these false claims are not going away.
House Democrats recently announced a hearing scheduled for Tuesday where many of the common myths are likely to be repeated.
Here are a few of the most common misconceptions.
Myth #1: The Cap Hurts Middle-Class Taxpayers
Before the 2017 tax cut capped the state and local tax deduction, 70% of taxpayers received no benefit from the deduction. Most of the benefits flowed to wealthy taxpayers in high-tax states.
Despite the cap, the vast majority of taxpayers still got a big tax cut for three reasons.
First, the tax law doubled the standard deduction, which means about half the people who previously chose to itemize their taxes (which allows access to the state and local tax write-off) now voluntarily choose to take the new larger standard deduction. Most of these people are better off than they were before.
Second, tax rates were lowered across the board. Even if taxable income increased slightly because of the state and local tax cap, lower tax rates mean most people still came out ahead.
Third, because the tax law raised the exemption for the ineffective and overly complicated alternative minimum tax, millions of higher-income alternative minimum tax-paying taxpayers saw the state and local taxes deduction increase from zero to $10,000 under the new law because they no longer have to pay the alternative minimum tax.
Taxpayers subject to the tax are not allowed to take the deduction for state and local taxes.
(Excerpt) Read more at dailysignal.com ...
“Most of the benefits flowed to wealthy taxpayers in high-tax states. “
Bullsh!t.
I am not wealthy and my taxes went up.
My Federal tax went up.
FWIW.
Not that I find the whole thing necessarily believable, in light of the massive amounts of money redistributed from bleu states like New York to red states like Alaska. And let’s face it, a $1400 average tax cut for individuals/families is PATHETIC.
Doesn’t surprise me. If I understand correctly, about 20% of the population saw their taxes remain the same or go up. I don’t believe the “only 10 percent” talking point, to the extent that is still out there.
He starts out using the Social Justice Warrior tactic of trying portray the tax hike (because that what it was) only affecting "the wealthy."
Dual income couple who are solidly middle class got bent over by this. Firefighters. Teachers. Electricians. The middle class. I guess that's just too hard for the author to understand.
We lost a large number of House seats directly because of the tax hike caused by eliminating and capping long standing deductions.
Rather than admit it, our side just goes further SJW.
Amazing.
I got screwed big time by it. My federal taxes were over $100k for the first time ever
Yes, this cap will only affect bleu states! /sarc
What seats were those? Kali lost several seats to vote fraud.
Gee!
You must be in the wrong state. Are you living in California?
For the first time in decades, this year, the standard deduction was greater than my itemized deductions.
We lost a large number of House seats directly because of the tax hike caused by eliminating and capping long standing deductions.
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If you’re talking about the Californian shifts, I think most of those changes were due to vote fraud and “ballot harvesting”. Many of the affected districts had the Republicans ahead by thousands of votes on election night but later (weeks later in many cases) the’RATS pulled ahead.
That was a huge tax savings for my small business located in CT.
FReegards!
If you are from CA, NY, NJ or IL I am sure your taxes went up. The feds stopped paying the states.
Democrats want to talk about taxes. They’re the ones that started taxing social security. They are the ones that don’t believe in equal payback equal work. What you say. They applied locality payments so people in higher pay areas get more money for sane work. This way than can keep poorer communities poorer. Another question do you give part of your pay back to your employer? Military and federalm workers do.
the real issue is that the corporate tax cuts don’t sunset but the individual ones do. that should have been flipped
I live in California (not by choice at this point) and not only do I bring home $200 more a month but my yearly return was slightly larger than last year. I guess I live the lifestyle best augmented by the new tax structure.
I have to hand it to the Dems and the media, 80 to 90 percent of the country gets a tax cut, yet 80 to 90 percent of the country is CONVINCED that their taxes went up.
Mind blowing.
Both corporate and individual cuts should be permanent.
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