Posted on 12/15/2017 7:55:38 PM PST by KingofZion
Limiting the SALT deduction could affect as many as 6 million Californians—one of every three taxpaying households in the state, according to Michael Cohen, director of the state Department of Finance. The average deduction for property taxes is about $6,000, he has told the state congressional delegation, and the separate deduction for state and local income taxes comes to nearly $16,000 per return.
One option that could be considered by the Legislature would be to redefine state and local taxes as charitable contributions, which remain fully deductible under the GOP tax proposals. The idea isn’t as implausible as it seems: The Internal Revenue Service and federal courts have ruled that government entities can count as charities for the purpose of the charitable deduction, even when the donor receives a full state or local tax credit in return.
Indeed, legislators in Sacramento already are working on a plan to give taxpayers the option of making charitable deductions to state government and taking a tax credit. [SNIP]
California and other states already have similar systems in place, Stark told me. California’s college access fund grants a 50% state tax credit for contributions to the Cal Grants program, which aids low-income college students. The program, which this year was extended through 2023, hasn’t been especially popular—although a maximum of $500 million in credits is available each year, only $5.4 million was claimed in 2016, the latest year available. That’s probably because the 50% tax credit isn’t very alluring, and only AMT taxpayers would find the credit to be of any use, Stark says....
(Excerpt) Read more at latimes.com ...
And you know what statell and local pols response to SALT staying in will be? Jacking state and/or local taxes. My local taxes are going up double digits. That’s not what I call MAGA.
same for property tax....is that added ON TOP of the doubled standard deduction?
all the while the backbone for hard working middle class older citizens are getting the rug pulled out from them...
the tax bill is penalizing we that have worked for decades and expected a few deductions to keep us in our homes, and stable financially...
well, its moot....
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