Senate passes bill making State Sales taxes Federally deductible.

Sen Nelson-540 WFLA ^ | 10/11/04 | Self

[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.

[newzjunkey]

in states with NO STATE INCOME TAX, you SUBSIDIZE the Fed Income Tax of People who live in a state WITH a State Income Tax. Because every dollar not paid by one person MUST be made up by another.

Sounds like you're opposed to this setup. Would you prefer DOUBLE-TAXATION then?

[newzjunkey]

NOT enough to justify $2.39/gallon for regular unleaded (as of YESTERDAY). Here in San Diego, we've seen a 24 cent rise in the past two weeks while the nation's seen a 6 cent increase. This time last year, the same gallon of petrol cost $1.80 in San Diego.

INSANITY.

[TheEnigma47]

I'm not opposed at all, in fact, I think its more than justifiable. People living in Texas, Florida, Wyoming, Nevada, Tenn (tax on Dividends and Interest only) and there may be one or two more, pay a HIGHER Fed tax on the SAME GROSS INCOME. This law will at least allow them to take advantage of SOME REDUCTION due to sales taxes they pay.

[AmericanChef]

This is seriesly hugh!

[oceanview]

see post #140, there is a way to do this to make it fair - and provide the desired outcome for the no income tax states.

[Gondring]

Apologies! You're right, of course. I had meant to reply to those who didn't realize it applied to all states.

Of course, all taxes should be deductible from Feds, but then does that just encourage further state taxation?

[satchmodog9]

more importantly, there is a poll to be freeped on this page.

[LibertarianInExile]

Sweet! That does sound like a great law!

Unfortunately the result will probably be the idgets in Tallahassee deciding that now is the time to try again to raise the sales tax, since it'll be deductible...

[LibertarianInExile]

Nelson stole tax dollars by flying his butt into space on the shuttle. He's a slimeball.

[Boss_Jim_Gettys]

"Of course, all taxes should be deductible from Feds, but then does that just encourage further state taxation?"

I think you are on to something. As soon as the Bush tax cuts and refinancing gave me a couple of extra bucks in my pocket, the county I live in raised property taxes and most of my "windfall" was gone.

[Gondring]

I think we're all on the same page.

[LibertarianInExile]

Bump to that. Just wish the Florida legislature and Supreme Court were.

[RinaseaofDs]

You already do. In states with an income tax, you are already allowed to deduct that from your federal taxes. In WA, you simply bend over and pay the sales tax (no income tax), and thus you don't get a deduction.

Should this apply to property taxes too? What about excise taxes? Fees on your phone bill?

[RinaseaofDs]

"then let the states with no income taxes impose one so their citizens can get the federal write-off - and lower their sales taxes accordingly."

Spoken like Ted Kennedy.

[Wneighbor]

?????????? We ain't got no state income tax.

[capydick]

States without state income tax have higher sales tax and property tax to compensate.

Here in the corrupt Garden State we have a state income tax, a sales tax and, high property taxes. But that's OK - we've got a governor who knows how to spend it all wisely, like hiring his boyfriend to be in charge of the safety of six million people.

[capydick]

The first move to eliminate the federal income tax.

Thats exactly what I thought.