Posted on 01/25/2020 1:25:23 PM PST by karpov
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Many people saw their overall taxes go down after the 2017 law was passed. But the law had two main changes making it tougher to live in high-cost, high-tax states, especially compared with lower-taxed options. It essentially curbed how much homeowners can subtract from their federal taxes for paying local property and income taxes, by capping the state and local tax deduction at $10,000. It also lowered the size of mortgages for which new buyers can deduct the interest, to $750,000 from $1 million.
These changes have the biggest impact on a sliver of the population who have high incomes and live in expensive areas. They tend to have white-collar jobs and the ability to pick up and move. Many own their own businesses, work remotely or are nearing retirement.
Critics say the changes have hurt everyone who lives in high-tax states, by taking a bite out of tax revenue. New York Gov. Andrew Cuomo, for example, panned the state and local tax cap last year. “It has redistributed wealth in this nation from Democratic states—we’re also called blue states—to red states,” he said at the time.
The average property tax bill in the U.S. in 2018 was about $3,500, according to Attom Data Solutions, a real-estate data firm. But many residents in New York, New Jersey, Connecticut and California had been deducting well over $10,000 a year. In Westchester County, N.Y., the average property-tax bill was more than $17,000, the highest in the country.
Among the people who are uprooting, many say they had long considered a change. But they saw the tax law as a reason to finally undertake the potentially difficult task of changing their state residency.
“It was another bucket of straw on the back of the camel,” said John Lee, a wealth-management executive
(Excerpt) Read more at wsj.com ...
And it was your own governor who most of you elected who repeatedly begged CA biz to move to Tx. I said at the time, ya all better watch what ya ask for.
Shush!
Yep, all the Lefties/Socialists, NEED to leave Texas, because it is really HORRIBLE here. It costs too much to live.....we have rattlesnakes and wild hogs just waiting to kill ya......and the heat will melt the skin right off your bones.
Those guys/gals will do a LOT BETTER moving to some other state. ;-)
Texas has a capped 8.25% sales tax, but does not have an income tax.
That’s right, then the city would throw in 1.25, so damn near looking shy of 10%, on top of the $3900 for property tax, in the metroplex. But it’s about dam time for a nationwide tax revolt where we control the rate and spending, since the legislature can’t be trusted anymore.
In Texas, it is illegal to have a combined sales tax over 8.25%.
Now, property tax or other fees seem to counter that, unfortunately.
I never voted for Gov. Good hair.
NY state taxpayers have historically paid more revenue via income taxes to the federal government than is received back to the state in federal government spending. Federal spending in NY on a per capita basis is on par with the total federal spending per capita (US). NY though, pays federal income taxes at a higher per capita rate than the US average. That means that NY is actually subsidizing other states. This redistributive function of the federal tax system is by design, to subsidize poorer states in the system.
Property and local taxes should be deductible because they reduce net income. If someone has less net income, their federal tax liability is reduced. Some people are ok with and believe it’s good policy to effectively tax a tax. I oppose this perspective because in my mind, it smacks of double-jeopardy.
The idea that NYers are subsidized by the lower tax states because they can write-off a greater number of taxes paid, supports the idea that the larger pool of revenues of the federal government are in fact the property of the federal government. Same thinking goes into the statement made by opponents of tax cuts, who beg the question - how are we going to pay for this tax cut? This perspective is rooted in the belief that tax revenue is actually the government’s money, not the taxpayer’s.
After the last round of tax cuts, government revenues increased. The issue here is not on the revenue side, it’s on the spending side. Spending needs to be reigned in...taxes can and should be cut further.
“The coasts are LOADED with Leftists, as election after election shows.”
Ever heard of Newport Beach? Seal Beach? La Jolla? Coronado?
Those are coastal cities that are not loaded with leftists. Just the opposite. They are Republican communities that have been punished by the PaulRyan tax bill that Trump signed
“Ever heard of Newport Beach? Seal Beach? La Jolla? Coronado?...Those are coastal cities that are not loaded with leftists. Just the opposite. They are Republican communities that have been punished by the PaulRyan tax bill that Trump signed”
How many people live in those communities, versus the 40 MILLION people living in California?
My point being that it is OVER for conservatives in California. They didn’t bother to fight the Left when it came to their kids regarding the schools, and now those kids are lost and so is the state. There is literally NOTHING that Trump can do for California, except what he’s been doing for 3 years now, which is to appoint CONSERVATIVE federal judges, which he has done great on.
If you think Warren or Sanders can get you back that stupid tax deduction, then, by all means vote them. Otherwise you may want to consider what just about every other conservative there has considered, or already done (like me and two of my kids), which was to LEAVE.
In any case, if it makes you feel better to stay pissed at Trump, so be it - your vote is cancelled 10 times over by Illegals there, so it’s meaningless anyway.
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