Posted on 10/31/2017 10:51:30 AM PDT by Mariner
(CNSNews.com) - The tax plan the House Ways and Means Committee will release on Wednesday may eliminate the federal income tax deduction that people are currently permitted to take for the state and local income or sales taxes they have paid.
That deduction, according to the latest Internal Revenue Service data, was taken by 42,502,130 tax filers—or 95 percent of the 44,671,840 tax filers who itemized their deductions in tax year 2015.
The deduction allowed those 42,502,130 tax filers to reduce their federal taxable income for 2015 by a combined $351,163,796,000.
The tax reform framework that the White House, the House Ways and Means Committee and the Senate Finance Committee agreed to in September said the tax plan it envisions “eliminates most itemized deductions, but retains tax incentives for home mortgage interest and charitable contributions.” It did not say it would retain the deduction for state and local income and sales taxes.
The Senate version of the fiscal 2018 budget resolution, which the House approved by 216 to 212 vote on Oct. 26, specifically envisions “changes in federal tax laws, which may include reducing federal deductions, such as the state and local tax deduction.”
(Excerpt) Read more at cnsnews.com ...
I’m with you. No more deductions. And pay from the first dollar. When big government costs you then you will vote for less government. Personally I’d end social security taxes. It’s all tax. Stop the fiction that you have an account with your money in it when it comes to SS. There is no trust fund because you cannot borrow from yourself.
Yep, the way it looks now, I’ll be getting a big tax hike. I’ll wait and see...but not looking good.
Exactly. The high tax states have been encouraged by the system to be profligate, just like the colleges with easy student loan money. The rest of the states are being taken advantage of. The citizens in the Red states are being forced to supporting states whose policies, such as sanctuary cites, damage America as a whole.
Perhaps we could phase out SALT and give the high tax states 3 years to revamp their bloated budgets. I live in one of those states ad I think the pressure from the people finally feeling the true weight of their ineffective and frankly corrupt government would escalate drastically. We might actually get Joe Citizen to understand the economics of electing Democratic officials. I think it would be the best thing to happen to NJ in decades although like the best of medicines it would be a bitter drink.
Besides Alaska there are four other states with no sales tax. People can and do drive into these states from adjacent states in order to save money on larger purchases. But probably not too many of these same people turn down the sales tax deduction if they itemize.
As you know that right there scares the crud out of the politicians because citizens would then have to write a check to the Feds every 15 April and that would really make them understand what kind of money gets thieved by the government.
We all know that withholding from every paycheck makes their theft of huge chunks of our money so much easier.
Part of the “POST CARD” plan is to raise the standard deduction enough that itemizing doesn’t make sense anymore. 1040 EZ on a Post Card.
My problem with that is: A higher standard deduction will mean MANY MORE people will not be able to itemize at all!
That means, a bunch of other deductions that come in handy every now and then will be gone. Things like: being able to offset Gambling winnings with other gambling LOSSES.
"If it moves, TAX IT!"
plus - next year we we will have increase withholdinplus, giving us less $ to play catch up with.
This is just TOO MUCH WINNING! Lol!
Even Obama didn’t propose a tax hike like this.
I’m talking about now, not all the rumors about the tax bill.
Ping for later read.
The figure quoted was nation-wide. It may have been for those in the 50-75K block. I don’t remember exactly and don’t feel like researching it again.
I can’ deduct my state taxes. Why? Because I don’t have huge medical bills, I own my home outright, and my charitable giving by itself combined with state taxes paid isn’t enough to exceed the standard deduction. I think I’ve itemized a half-dozen times in my life.
People who rent also rarely get to deduct state taxes, since they cannot claim mortgage interest.
I tend to like having the deduction exist, but I’d trade a lot of things for a better business climate. If that means I pay more out of pocket, so be it.
You don’t have to pay for a tax cut. They pay for themselves.
“Things like: being able to offset Gambling winnings with other gambling LOSSES.”
I’ve volunteered to help people with their taxes. I’ve yet to meet someone who kept records of their losses.
“Why do you think companies are leaving blue states, for red states in droves?”
There’s no more room.
The cost of living is so high here because there is so much money. Everybody has it.
The lowest rate that has ever been mentioned is 12% so what is your point?
Overall, 44 million people itemize their taxes. They will lose these deduction AND the personal exemption to boot. “”
Explain, please.....
You purposefully left out the true math on that too didn't you.
“The citizens in the Red states are being forced to supporting states whose policies, such as sanctuary cites, damage America as a whole.”
You’re either unaware of the facts, or are not very smart.
These blue states you hate are paying, by far, the bulk of the Federal taxes. For the most part the red states are parasites, taking in far more than they contribute.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.