Posted on 12/16/2017 11:00:35 PM PST by Oshkalaboomboom
With all the horse trading over the tax plan, the politicians and the president’s advisers are missing a key economic point.
Most politicians and economists talk profusely about the so-called “middle-class,” but the fact is, in America, where states are free to tax whatever they can get away with, your ZIP code may be far more determinant of your economic level than your salary.
That point is completely lost on pretty much everybody writing the tax code. You see, what’s middle class in Topeka isn’t middle class in Queens or Hoboken.
If the tax bill passes with the low SALT (state and local taxes) deduction of just $10,000, the economy may have a real slowdown.
Let’s look at a typical NYC-area family. The wife is a lawyer; her spouse, an associate TV producer. Together they make $190,000 — that’s good money, for sure, but they live in an expensive area for work.
(Excerpt) Read more at nypost.com ...
I have zero sympathy for those in high tax states. They got what they voted for. Now, they have to deal with the consequences of their stupidity. If you didn’t vote for it, then you should vote with your feet.
“What “modest home” in the boroughs has a tax bill of $19,400?”
You should come to NY some day. This is absolutely right. Real estate taxes in my town are quite higher than that for 2,500 sf home on 1/4 acre about 30 minute train ride out of NYC.
The fact is - NY, Cal, NJ - all those high state tax state get back far less than $1.00 for ever dollar they contribute to the Feds!
Whereas, states like Florida, Kentucky, West Virginia and 7 others get more than 2x back the federal taxes they pay.
Who is subsidizing who?
Also, the concept of “taxing taxes” is compelling. I can’t keep the money I send to NYS for taxes; but the Feds tax it anyways.
This part of the bill is horrible and will turn a lot of Trump supporters off (both of us here in NY!). Would have been better at 23% corp. tax and retain SALT.
Not fake. It is why I left NY. Property taxes on Long Island are astronomical.
There is a lot of things that don’t add up. First of all a Lawyer and TV Producer would be making much more than $190k in NYC. I know many 2 earner blue collar families in NYC where together they make over $120k. Second with the NYC Real estate tax rate (which I know from first-hand experience), to pay over $19k in taxes, you would need own a greater than $2,000,000 home. To actually get taxed on the $2,000,000 you would have had to buy very recently due to the way NYC adjusts up and down (LOL) the taxable value of you home within year over year limits.
I live in Upstate NYS. Not in one of the major metro areas. In my neck of the woods, I know folks with $150,000 to $200,000 homes who are paying 6 to 10k in property taxes.
When that government becomes corrupted and does things that are mutually destructive to all of us, favors one group over another, or wastes money on useless programs, they are essentially wasting your life (wasting your tax dollars). But most people aren't smart enough to understand or speak that ugly truth.
Liberals always characterize it as "the Rich won't share with us", like whiny little kids whose playmates won't let them play with a toy they want to play with, when in fact we ALL pay for Federal taxation, whether directly on your 1040, or indirectly, in the form of corporate taxes (businesses don't pay taxes; they pass that cost along to the consumer).
Show me a lawyer/associate TV producer that only make a combined $190K - especially in the NYC area......
You are correct - the high tax States/areas are double edges - on one hand they contribute more but on the other hand they end up having their taxes subsidized by a larger pool of folks in ,lower COL areas.
If you choose to live in a high tax zip code, for what ever reason, don't expect me to subsidize your life style.
Now I know I am old. I can’t read the acronym SALT without first thinking it stands for Strategic Arms Limitation Treaty.
“””The fact is - NY, Cal, NJ - all those high state tax state get back far less than $1.00 for ever dollar they contribute to the Feds!
Whereas, states like Florida, Kentucky, West Virginia and 7 others get more than 2x back the federal taxes they pay.
Who is subsidizing who?”””
Much of the tax money sent by NY, CA, or NJ to Washington DC comes from Corporations who are headquartered NY, CA, or NJ, but do business in the other 47 states.
Right???????......
As Bob Dylan sang,
"You've got to serve somebody...."
I wouldn’t live there, either. That’s money homeowners could be using for an emergency fund, retirement, college bills. Instead taxpayers ate having to fork it over to pay for so-called public servants’ insanely unaffordable pensions and health insurance bennies.
Not to mention we know an increasing number of people who’ve either been unable to sell or have had to sell at a loss because of the prop tax burden.
I don’t care where you pay it. It’s legalized theft. Every damn dime of it.
And everybody on this thread should remember that the purpose of a tax is to fund government activities. The SJW contingent in Congress continues to affect personal behavior by throwing crumbs into the code to make enough people think they "won" the tax code change battle.
I'm mildly surprised the Democrats haven't tried to add some refundable credit for adopting an illegal alien in order to convince voters we need more illegals.
“That’s crap. The principle is you don’t tax taxes.”
I don’t hear you guys bitching about paying taxes on taxes when it comes to sales taxes, gas taxes, and the thousands of other taxes you don’t even see.
“Any home in the “boroughs” with that level of taxation is miles beyond modest.”
I don’t know if you live in the NYC area, so pardon me if you don’t, but I have a friend in Ridgewood, NJ, who has a house valued around $700,000. It’s a 1962 three bedroom, 2,700 square foot house. Nothing spectacular. Just a modest house.
Property taxes are $14,400. That’s a lot of taxes.
However, I am for removing SALT from deductions as all it does is take that $14,400 off his federal taxes.
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