Republican call to strip property tax deduction spurs outcry from blue states

FOX News ^ | 9/28/2017 | Brooke Singman

[alancarp]

Homeowners in tax-happy blue states could find a bitter pill inside the new Republican tax plan, which would kill their ability to write off the property taxes that can cost even middle class families more than $10,000 per year.

The plan rolled out Tuesday would keep in place deductions for mortgage interest and charitable donations. But, in a move to help offset other major cuts in the plan, many other itemized deductions would be scrapped. ... New York Democratic Gov. Andrew Cuomo slammed the proposal, saying the loss of the deduction could cost New Yorkers more than $17 billion.

“It would penalize this state,” said New York Gov. Andrew Cuomo, who said the “death blow” could cost residents of his state a collective $17 billion. “It is the height of hypocrisy. You have an administration saying, 'I want to cut taxes,' and now literally they want to tax you on the taxes that you pay.”

[AndyTheBear]

All taxes are a tax on tax. Money is taxed all the time in various ways...each time taking a bite. Income tax then sales tax fir example. How about lowering taxes in blue states instead?

[scooby321]

Ok I can understand where Your Coming from but depending on your income the doubling of your standard deduction should take care of it or the elimination of AMT if your are in a High Income bracket

[AndyTheBear]

California at least has prop 13... the politicians here dont like it, but they havent been able to overturn it yet...though they sure have found other ways to screw us.

[MeganC]

“I’m in Blue Jersey, and if I can’t deduct my property tax, I’m not going to be happy!!”

Here’s the answer to your New Jersey tax dilemma:

https://www.uhaul.com/

[Jim from C-Town]

The idea is that low tax states have been subsidizing high tax states with this type of deduction.

Removing this deduction would require the local states to be more efficient in their activities. Perhaps there are a great deal of cuts in state and local expenditures that can be made to lower local taxes.

[MeganC]

No...your solution is to tell your state to LOWER YOUR TAXES!!!!

[WKUHilltopper]

Just get rid of that evil that’s called property tax and you’ve got it solved.

[FatherofFive]

Flat tax of 15% on all income above $25,000. No deductions.

[JoSixChip]

Don’t know about you guys but we are in a high property tax state (Florida). Would like to see this remain as a deduction...

I live in a low property tax state. Are you saying that I should pay more in federal taxes to subsidize your high property taxes?

[God luvs America]

i’m in blue state NY- if i told you what i paid in property/real estate taxes you would choke..i’m in new castle- same municipality as the clintons...while i would not be happy i would encourage this as it would force towns/school districts to live well within their means...

[JoSixChip]

Flat tax of 15% on all income above $25,000. No deductions.

You have my vote.

[bert]

Not goin to be happy?

Good. the problem is New Jersey, not those of us subsidising you by allowing a state tax deduction.

[Rockitz]

This is a two edged sword. Hopefully any pain will turn the blue states into red states, when the electorate gets peeved.

[SES1066]

My property taxes, which are very high in Texas ($14k a year for us) are my ONLY deduction I’m allowed.

Since Texas is one of the no State Income Tax states, you should be able to take your sales tax deduction (6.25-8.25%) as well, right? The CURRENT rule is compute both and take whichever is highest. There is an IRS 'safe harbor' default value based upon income if you, like most people, do not keep exact records.

I am only writing this in case you are forgetting that deduction.

[Rockitz]

Seen anything on Alternative Minimum Tax (AMT)? My wife and I get killed on this every year.

[Wolfie]

Including dividends and interest?

[alancarp]

Afraid not - but we’re a long way off from anything... if anything actually happens (re: ACA).

[SES1066]

Hopefully any pain will turn the blue states into red states, when the electorate gets peeved.

Unlikely when the number of non-taxpayers; welfare, low-income EITC filers is so close to 50% of potential filers.

[FatherofFive]

Including dividends and interest?

Earned income only. Money invested has already been taxed.

[proudpapa]

Consider moving to a red state... or better yet a swing state.