Posted on 04/27/2017 2:34:22 PM PDT by shove_it
The Trump administration has been looking for ways to cover the cost of its "massive" proposed tax cut. On Wednesday, it appeared to offer at least a partial solution: Make blue states pay...
~snip~
So just how dramatic is it? According to 2014 figures compiled by the Tax Foundation, taxpayers in just four deep blue states -- California, New York, New Jersey, and Illinois -- reaped nearly 44% of total benefit from the deduction. That means those four states pick up the lion's share of the tab if the deduction were eliminated.
In all, the 18 states that went blue on November 8 would wind up covering about two-thirds of the revenue increase, while the 31 that turned red would pay the remaining third of it.Taxpayers in Maine, which split its vote, would see only a small increase in their bill.
(Excerpt) Read more at time.com ...
No objections here.
Sounds like a WIN WIN!!
ssshhhsss ... don’t tell anybody.
I live in a blue state. The majority of the populace needs this painful lesson. Whether a significant percentage will learn from it I cannot say.
Another way of putting it:
These states have had their state-level benefits subsidized by Federal revenue losses for long enough. Time to level the playing field.
Outstanding
I see your point and agree.
That means that the original deduction was targeted to benefit only those 4 states. What goes around comes around. Sweet and simple.
P.S. As noted above, that means the rest of us were funding their socialist programs.
No, how about the reality of this situation - blue states are run by commies who love to tax their citizens because they don’t know how to run their states without the extra money. Unfortunately, I happen to live in the worst blue state of all - Commiefornia.
It is about rewarding your friends and punishing your enemies and if THIS presidemt doesn’t understand that he’s got another thing comin’.
It means that those that chose to live in high tax states got to deduct it from their federal taxes while those of us that live in more frugal states do not get a deduction.
If you consider that those four states mentioned also contain a substantial portion of the country’s population that 44% figure is not as ‘unfair’ as it initially sounds. It was probably phrased that way on purpose to generate outrage.
Nope. We keep hearing that we want them to pay their fair share.
Do you all believe that people who make much more than you do, somehow "owe" you something/should be "punished" for being able to make that much money ( of course, not the ones you like, such as the president}?
How about the deductions that YOU can't use ( lower tax rates for capital gains, depreciation, lowering one's tax burden, by giving children/grandchildren a trust ) because you either can't afford to, or some other reason?
And IF/WHEN people, in high tax states, move to where you live, that'll REALLY get all of your collective noses out of joint...now won't it; even if some of them are CONSERVATIVES!
I live in a high tax state, Only a few pockets of which are “blue”, and those people either don’t pay any taxes, won’t change their minds, and/or will only HATE Trump and GOPers more, because of this, IF ( big IF...I don’t see that part of the proposition about taxes staying in/passing ) it becomes “law”.
I see the blue state aspect here, but unfortunately for this Trump voter, I live in a blue state.
What bothers me is that removing deductibility for state and local taxes means that you are subject to double taxation on the same income from multiple jurisdictions. So, if you pay state and local taxes, under this plan, the Federal government taxes you on income you don’t have, because the state took it away.
In some European countries, this sort of multiple taxation is how they occasionally got to tax rates above 100%. Now, that won’t happen here... at least for a while... but I don’t like double taxation, even if the rest of his proposals will make it up to me in some other way (like a reduced top rate or a larger base deduction). It’s a bad principle that will be abused by later Congresses.
what are you talking about?....property taxes?...income taxes?...sales tax? I live in a blue state with high property tax and high sales tax...no state income tax...
Floridians don’t get a deduction for sales tax, or state property taxes.
Levels the playing field.
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