When it comes to Hill reporting, I’ll wait to see it to believe it. Otherwise, this is just them trying to stir the pot and generate opposition to the Republican agenda.
AMT wipes out local tax deductions for the wealthy, why would they focus on the middle class?
AMT wipes out local tax deductions for the wealthy, why would they focus on the middle class?
Think of the tens of millions of man hours saved by making tax preparation easier. For example, the August 15th extension was eliminated in 2005. IIRC, the IRS estimated that 20+ million man hours were saved by that one simple step.
I am thinking “this is going to flip a whole lotta states from blue to red faster than you can say ‘H&R Block’.”
This seems like a no-brainer.
Create a fairer flatter tax code with fewer deductions, and screw the Blue States while you’re doing it? Win-WIn
This is clever way to raise taxes on Democrats in blue states, without doing much harm to GOP voters.
No one peep on eliminating inheritance tax.
Get rid of all deductions and go to a flat tax.
This will hit middle income Americans the hardest. As for myself the biggest deductions I have are on my mortgage interest and my state income and local property taxes. I see the rationale for putting pressure on keeping these taxes in check but I’m no exactly sure if this is the best way to go about it.
capping the mortgage interest deduction should also be in the running (and I think it has been mentioned by Trump) since it is also a subsidy for higher-earning people to maintain debt by buying expensive houses. Peg it to the same rate as the basic VA loan cap (417,000, still a pretty penny in most zip codes) and limit it to primary mortgages (a secondary mortgage deduction doesn’t promoting homeownership, it promotes living beyond your means)
A lot of people in the DC metro area will lose their shirts, but I don’t know if that’s really a bug or a feature.
Plus they keep trying to bring back pork
These folks are insane
One of the arguments for federal tax exemption of payment of local taxes is that it helps State and local governments raise money that they would have to go to WA DC to beg for.
Another is that the federal government should not tax State and local governments.
If the federal government says that municipal bond income is no longer tax exempt under Congressional laws or new IRS regulations and it is adjudicated as Constitutional, then local sewer, water and public works projects will be much harder to finance and local government will need to go begging to WA DC for money.
If the federal budget is constrained properly than those local jurisdictions will need to use costlier methods to fund their projects. Since Democrats have lost so many State Legislature and State Governor offices, the remaining democrats at the county and city level will need to either raise local taxes or increase fees/rates for the locally provided services. Again, as these are more under control of Democrats, it will be Democrats who will be put in a harsher box associated with lost tax exemption.
Some Republican Counties and some Republican controlled states will be hurt, but they will also probably understand the give and play between local and federal taxes and understand that local tax revenues are more efficiently spent than by the federal government