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Here's why Trump's tax plan will hit Californians especially hard
LA Times ^ | 9/28/17 | Jim Puzzanghera

Posted on 09/28/2017 9:15:45 AM PDT by NohSpinZone

Many Californians face a big financial hit under the Republican tax plan, which would eliminate a major tax break that benefits state residents more than those anywhere else in the U.S.

The federal deduction for state and local taxes allowed Californians to reduce their taxable income by $101 billion in 2014, according to an analysis by the nonpartisan Tax Foundation.

The tax outline released Wednesday by President Trump and top congressional Republicans would ax the break, which largely benefits residents in states that are Democratic strongholds.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: california; deductions; taxplan; trump
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To: NohSpinZone

Oh, boo-boo to California. Let them pay for their welfare state, single payer healthcare, high speed rail, sanctuary cities, University of California school system, and all the other social warrior experiments Jerry Brown and his pals have dreamed up WITHOUT the help of us non-Californians.


61 posted on 09/28/2017 11:12:16 AM PDT by ReleaseTheHounds ("The problem with Socialism is that eventually you run out of other people's money." M. Thatcher)
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To: ReleaseTheHounds

Yep, this was the point of my post. I know there will be a lot of pissed off Californians because of this. I should be one of them as I’m also an itemized tax filer and this is likely to impact us too.

However, we really should be turning our anger to the fools in Sacramento who think our money grows on trees that they can pluck at their will. Because of these deductions, they’ve been able to mask how bad their spending policies are and how out of control they really are.

We need to shine a light on this! Sacramento needs to be cleaned out.


62 posted on 09/28/2017 11:15:39 AM PDT by NohSpinZone (First thing we do, let's kill all the lawyers)
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To: DoughtyOne

Free it up by not taking it in the first place.


63 posted on 09/28/2017 11:25:58 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: sparklite2

Either way works for me.

I’d prefer it took place as you suggest here.


64 posted on 09/28/2017 11:29:28 AM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: DoughtyOne
Renters cannot deduct mortgage interest payments.

Landlords can deduct them. This is reflected in the rent the renter pays.

65 posted on 09/28/2017 11:31:03 AM PDT by calenel (The Democratic Party is a Criminal Enterprise. It is the Socialist Mafia.)
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To: calenel

Renters cannot deduct mortgage interest payments.


66 posted on 09/28/2017 11:32:56 AM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: DoughtyOne

I had a condo in San Jose and sold it at a loss. Since that wiped out any tax liabilities I had for the year, I didn’t bother filing a state return. Then I moved to Seattle.

The California taxing authority actually tracked me down in Washington and started sending me threatening letters for a missing tax return. I tried to tell them I owed them nothing. Eventually, I got a letter telling me I’d be arrested if I ever came into the state again. So far, I’ve managed to avoid it. It isn’t exactly Merle Haggard’s The Fugitive, but it is a life of exile. LOL


67 posted on 09/28/2017 11:38:35 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: DoughtyOne

I may be misremembering, but there is, or used to be, a renter’s deduction on the state tax form, to offset the landlord’s tax benefit.


68 posted on 09/28/2017 11:40:44 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: sparklite2

Get some forms and fill them out.

Look, it’s silly, but it may save you some grief down the road.

Bureaucrats can make your life a living hell unfortunately.

It won’t cost you more than a few minutes of time, and postage.

Fill out an EZ short form, or some such.


69 posted on 09/28/2017 11:42:31 AM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: sparklite2

I’m not sure if that exists any longer to be honest.

It’s was a very small sum.


70 posted on 09/28/2017 11:44:03 AM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: NohSpinZone

Two areas where residents of low tax states subsidize Californians through the deduction of state and local taxes. Both are POLICY choices adopted by officeholders Californians voted for:

1. Union labor used in residential construction makes housing (and thus mortgages) more expensive than it would otherwise be.

2. Overpaying state and local government employee drones through union negotiated contracts raises taxes.

Thus, Californians’ chose to let unions (both private and government) force higher taxes. I can’t vote in California, but some here want me to pay for the costs incurred. No thanks.


71 posted on 09/28/2017 11:46:22 AM PDT by FirstFlaBn
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To: sparklite2

That renter’s credit was/is? $60 for a single person making less than $39,000 dollars and change or $120 for two people making less than $78,000 and change.

https://www.ftb.ca.gov/individuals/faq/ivr/203.shtml


72 posted on 09/28/2017 11:56:21 AM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: DoughtyOne

California renters who meet income and other requirements can apply for a renter’s credit of $60 (if filing separately) or $120 (if filing jointly).


73 posted on 09/28/2017 11:58:19 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: sparklite2

Beat you by a minute and fifty-eight seconds.

“:^)


74 posted on 09/28/2017 12:00:40 PM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: DoughtyOne

:)


75 posted on 09/28/2017 12:11:02 PM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: DoughtyOne
Renters cannot deduct mortgage interest payments.

Renters don't pay mortgages (directly). Landlords do. And they, landlords, can deduct mortgage interest. Those deductions reduce the cost of providing the housing and consequently the amount of rent that must be charged.

76 posted on 09/28/2017 12:44:03 PM PDT by calenel (The Democratic Party is a Criminal Enterprise. It is the Socialist Mafia.)
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To: calenel

Renters cannot deduct mortgage interest payments.


77 posted on 09/28/2017 12:47:30 PM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: calenel

If you wish to think that all (rent building) mortgage tax deductions are devoted to lowering rents, go ahead. I don’t think that at all, and renters cannot deduct mortgage interest payments.


78 posted on 09/28/2017 12:51:11 PM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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To: DoughtyOne
If you wish to think that all (rent building) mortgage tax deductions are devoted to lowering rents, go ahead. I don’t think that at all, and renters cannot deduct mortgage interest payments.

Dude. I've already said renters don't directly pay mortgage interest. It is much the same as corporate taxes - the consumer ultimately pays them. AS A FORMER LANDLORD I can factually tell you that interest and all other costs factor into rental prices, just like that other Freeper you chose to be obtuse with told you. Interest payments affect rent, and any reduction in offsets and subsidies will have an effect going forward, although that isn't the point. The point is that, in the past, they were a factor in determining rental rates.

If you want to pretend that interest/tax payments won't have an effect on decisions to raise or not raise rents, that's just you, once again, ignoring facts to sustain your own chosen reality. Good luck with that.

79 posted on 09/28/2017 1:06:55 PM PDT by calenel (The Democratic Party is a Criminal Enterprise. It is the Socialist Mafia.)
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To: calenel

As I said, if you wish to think all landlords look at their mortgage deduction and adjust people’s rents accordingly, I think you’re kidding yourself.

Any surplus funds are not necessarily showered down on renters. In many instances they go into a pool for the next building purchase.


80 posted on 09/28/2017 1:15:52 PM PDT by DoughtyOne (John McBane is the turd in the national punch-bowl.)
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