Posted on 09/28/2017 9:15:45 AM PDT by NohSpinZone
Should get rid of the mortgage deduction entirely and stop having the government provide a subsidy to the banks.
About 90% of the California state income taxes is collected from less than 10,000 of all the California individual income tax returns filed.
“Ironically and somewhat painfully, this plan should also revive the pub party in the high tax states.”
Not necessarily. I can see quite a few of the remaining California conservatives leaving California as well as a lot of hypocrite Rats. So California could get more liberal while Nevada and Arizona get more Californicated by all the hypocrite Rats abandoning ship.
Well, DO, the mortgage interest tax deduction is meant to encourage home ownership by making it a tad more affordable.
What is the purpose of reducing taxable income to the IRS by subtracting state income tax? Is it to encourage states that are already high tax to become even more so because Uncle Sam will make up the difference?
These are both forms of tax relief.
Right now we are trying to get tax cuts for the public, realizing this will expand government tax receipts.
Doesn’t cutting taxes for people in states that have an income tax, also free up money to help expand government tax receipts?
Yes, I do believe that tax cuts do help to increase home ownership, and home owners do spend a lot of money for upkeep and home improvements, sparking local economies.
I’m not sure that justifies one tax cut and undercuts another.
If we want more money in the private sector, all tax cuts are reasoned.
the reason it benefits CA more than other states is because CA has more upper middle class wage earners.
Those over $80k per year.
But EVERYONE who itemizes will see a tax increase.
Everyone. No matter what state they reside in.
You will no longer be able to deduct property taxes, sales taxes or state income taxes. No longer able to deduct the excise tax on your car registration.
EVERYONE WHO ITEMIZES WILL SEE A TAX INCREASE!
There are winners and losers in any legislation that gets passed.
Trump is atypical for a Republican in that, given the choice, Trump prefers to shaft his enemies rather than his support base.
“Tax cuts and crush the deep blue states.”
You are exposing your deep ignorance, just as the GOPe had hoped.
EVERYONE who itemizes will see a tax increase, no matter what state they reside in.
You anti-American ass.
Californians, Its not our fault you live in a stupid state. Besides you people love paying more taxes, so stop crying.
Agreed. I’m a sole proprietor and itemize in our filings. I know this will increase my taxes but by how much I have no idea yet.
The relief that workers like me have is that I can defer a lot of gross income through various retirement accounts. I can contribute to an individual 401K as well as a SEP IRA. That helps and I take full advantage of this because I have to pay both ends of the Social Security and Medicare taxes as well as having to fund my own health insurance fully.
What I’d be curious to see is if this final plan will include raising the ceiling for contributions to retirement accounts, even for W-2 wage earners. That would make sense to me - defer the taxes and encourage people to save more for their retirement.
Yes, I do believe that tax cuts do help to increase home ownership, and home owners do spend a lot of money for upkeep and home improvements, sparking local economies.
Then my question to you still pertains. What is the intent behind deducting state taxes? I doubt it is to encourage high state taxes to go even higher, but it has that effect. If the purpose is to put money back into the taxpayer's pocket, then skip the middle man and don't take the money from the taxpayer in the first place.
I covered the benefit of freeing up money for to spark economic growth.
Did you read my post?
Everyone who itemizes will see higher taxes, no matter what state they reside in.
Perhaps your animus is really directed at those who make enough to itemize? You know “the rich”.
“Agreed. I’m a sole proprietor and itemize in our filings. I know this will increase my taxes but by how much I have no idea yet.”
Yet we have all these dumb bastard commies on FR doing the bidding of the GOPe by supporting this plan because “it sticks it to NY and CA”.
That’s the fraud and these people are dumb enough to fall for it.
I assure you and all others that meme originated in the offices of the GOPe when they released this plan. They believe the hatred the base has for these states will carry this legislation over the finish line.
And these dumb bastards will help them do it, even if it increases their own taxes along with 40- million others.
“Liberal states like Calif, NY, NJ, IL have been having the rest of the country subsidize their high state taxes for decades.”
To hell with higher tXes for the rich. Rather higher taxes for the corrupt...CA,NY, NJ,IL.
“Too many parasites depend on current tax codes to make their money. Should be a simple, across the board, 10-15 percent tax on all spending. None on income or capital gaines. Period”
And every man jack pays..down to street bums.
“Too many parasites depend on current tax codes to make their money. Should be a simple, across the board, 10-15 percent tax on all spending. None on income or capital gaines. Period”
And every man jack pays..down to street bums.
“I mean, why should folks who don’t own a home have to subsidize homeowners”
Because homeowners like me in illannoy are paying out the ass for the freaking schools!
I used that deduction for argument purposes only.
It was not my intention to argue against it. I was arguing against another deduction being attacked.
I fully support your mortgage interest deduction.
I would never argue that it should be eliminated.
“The federal deduction for state and local taxes allowed Californians to reduce their taxable income by $101 billion in 2014.”
Note to California about what that means to everyone else in the nation. All taxpayers paid higher rates than they would have otherwise, to subsidize the $101 billion in tax deductions those in California go to take, plus the hundreds of billions in similar deductions folks in other high tax states got. Who was robbed most to pay for these deductions? Folks in lower tax states who did not get those hefty deductions from their taxes.
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