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 ...
That’s crap.
The principle is you don’t tax taxes.
NO ONE in the Republican Party ever talked about this until a few months ago when they started pushing the subsidy line.
It IS NOT why we elected Trump.
That was about immigration and trade. Not Leftist redistribution crap like eliminating the deductibility of taxes.
Up until the mid-80’s ALL interest was deductible: the principle being that interest was income to someone and no double taxation should take place. They eliminated that and increased the standard deduction to try to cover it, but it was always just a scam to raise taxes.
And that’s all this is.
thx....so very true.....this whole thing is a absurd...
All my life I’ve been subsidizing NY and Cali ,, making it easier for rat politicians to tax their people... it isn’t right for people in faraway states to ride the subway or for states to make exorbitant retirement packages for their cronies on my back ,, F’Em! They want to live in Massachusetts or Chicago ,, let them pay FULL F*ing FREIGHT.
So whats the problem, they live in states where taxes are high, caused by Dem policies, they must pay their fair share, their the ones enjoying the benefits provided by the higher state and local taxes.
“Hatred of taxes is the root of all evil” - unknown democrat economist
The left keeps saying that raising taxes on the rich is great for an economy. I guess they’ll get their wish.
It’s gone unreported with the exception of a slip up by WLS am 890 news reported only once. But two civic groups (Brighton Park) and a north side group Humbolt Park) have instituted a law suit against the state for allowing the city to use property taxes as a means of funding social programs.
What “modest home” in the boroughs has a tax bill of $19,400?
There’s something goofy about this columnist’s numbers.
Any home in the “boroughs” with that level of taxation is miles beyond modest.
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...
***************************
“Typical”? More fake news.
The Federal tax laws are supposed to be applied equally across the US, not be tailored to each State. The high SALT States seem to want to be treated as a “special interest group”. .....Those States need to strongly voice their needs for lower SALTs to their State governments.
“Let’s look at a typical NYC-area family. The wife is a lawyer; her spouse, an associate TV producer.”
Guess what, whining liberal puke, a lawyer and a TV producer aren’t middle class anywhere in America!
Except the high SALT states subsidize the rest of the country by paying more to the Feds than they get back. Nice BS narrative though. I bet you live in a moocher state. How about we get to lower our taxes and you stop taking our money so we wouldn’t need high state taxes?
Umm no you’re u havent.
Umm no. The SALT deduction was put in place at te time the Income Tax amendment was passed in 1913 So try again.
>> All my life I’ve been subsidizing NY and Cali
LOL... you have not. While your state is a robust contributor to the Fed, FL is a distant fourth to the NY household that pays far more despite SALT.
It’s not the money, it’s the fraction of your working hours that you spend in slavery to the governments.
What is really criminal is how they moved the personal exemption over to part of the standard deduction.
That means that modest-income folks in high-tax states can’t get the deduction while the high-income get to deduct their nannies, expensive private schools, SALT taxes, etc.
Same goes for charity deductions, mortgage interest deductions, etc. Those in the lower middle in general have got screwed—but especially in the high-tax states.
All deductions should have been put on a several-year phase out, coupled with significant reductions in personal income tax rates.
But no...
Typical generally means median. Median for NYC was $73,854 in 2016. Typical for people the author knows? Maybe. What is clear, though is that Trump will lose a huge tax deduction here. Not that the media will talk about this.
That tax bill would be in NJ. Insane.
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.