Posted on 10/11/2004 12:36:11 PM PDT by ijcr
Senator Nelson D-Fl stated that State Sales in the six States that do not have State income taxes will be deductible in 2004 and 2005.
This is hugh.
Can we get a deduction anyway?
Live Free or Die.
actually, it was Mario Cuomo who put in place most of the policies that has made NY state a nightmare.
The whole tax thing don't make no sense. Let's say you make $10,000. You are charged $2,000 federal tax on it. (All hypothetical low figures for the innumerate, don't get blue in the face.) Then, if you think about it, part of the $2,000 is tax on the $2,000 itself, which isn't yours since you're handing it to the welfare recipients, the starving farmers, and the shysters in Congress. What to do? Me thinks the federal income tax itself should be deductible. It's only fair.
uh, I think it allows anyone to do so...it's just not worth it in states that have income tax burdens higher than sales tax. You get one or the other, right?
ping
Wow. They getcha coming and going. Time to move. :^O
We had it before but it went away IIRC in Reagan's "reform" in 1986. Just the beginning of elimination of deductions that helped the average Joe a little .. the ones not eliminated got made subject to the 3% limit test etc. Recent changes in brackets and "marriage penalty" rates have, on the other hand, definitely helped my family. Thanks W !
And Tenneseeans, too!
They are talking about State tax vice sales tax. This would be on your W2s.
Correct me if I am wrong, but isn't Nelson doing the same (stealing American tax dollars)? I mean if you live in Florida and you do not pay State Income tax, how can you then deduct it? Or am I reading the post wrong?
Yes. So is local income tax.
Kiss mah grits.
Come on dayown!
The wonderful thing about living in New Hampshire under Governor Craig Benson is that we actually have, believe it or not, smaller government and less spending to compensate for our lack of income and sales tax.
I'll bet that you'll have an option:
take either the sales tax deduction, OR the income tax deduction, thus putting those of us in the 5 states with no income tax, and Tennessee, on an equal footing with the rest of the country.
And yes, you can save every little slip of paper, OR you can take the standard sales tax deduction, based on income, just like you did before Reagan did away with this tax "loophole."
The well-organized will be rewarded, as usual.
And don't forget: you pay sales tax on gasoline! LOTS of it!
Well put.
It's been tough to get this changed because of the "tyranny of the majority" who know THEIR taxes will be increased if we in the "no-state-income tax" states were treated fairly.
The first move to eliminate the federal income tax.
I just read up a bit more on the law. It is worded so that a person in each state may deduct either their sales or income tax, whichever is higher. This will certainly pass constitutional muster.
How did Kerry and Edwards vote? /sarcasm?
I don't think you get my point. Let's say two people living in two different states have a state/local tax burden of $10,000. In state A, the breakdown is $5,000 in state income tax, $3,000 in property tax and $2,000 in sales tax. In state B, the breakdown is $5,000 in property tax and $5,000 in sales tax and there is no income tax.
The resident of state B gets to deduct 100% of the tax burden from the federal tax return. The resident of state A gets to deduct either $8,000 (income + property) or $5,000 (sales + property), but cannot deduct the entire $10,000.
NOT FAIR!
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.