Not a problem to me. Maybe the citizens of the several States could get their respective legislatures in order.
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.
Ping
Yep, but that's not going to happen. If Nelson can get this through the conference committee and signed by the White House, I will move to florida to vote for him in 2006. It should be interesting to see if Bush will publically oppose this amendment and really offend the people of the swing states (FL, Nevada, etc). Looks like Delay and the House GOP is going to have to do his dirty work.
I did it before the deduction was taken away in the mid-80s. Not so hard. You can just use your check register to do it, if you don't spend alot in cash, that is.
Yes, as is property tax.
To spend on plywood?
Guess I've been paying taxes longer than most here. Sales tax used to be deductable but that was one of the things that went away with Regan's lowering of the tax rates. You could keep track of how much you paid or they gave you a table based on income that allowed a standard deduction as a function of income.
Not a problem to me. Maybe the citizens of the several States could get their respective legislatures in order.
Discarded reciepts could become as valuable as Coke cans with a 5 cent deposit.
Ah. I know property tax is, but it would be just like the FedGov to tax you twice on state income tax money.
I live in NY State, I beg to differ. In fact I don't just beg to differ, I differ!!
GREAT!
Something you must also consider. Since the state income tax paid is DEDUCTABLE from your Fed Income tax, then your Fed Tax liability is LOWER than the Fed Tax liability for someone with the SAME GROSS income in a state with NO state income tax.
The following is for REFERENCE ONLY and I have NOT checked the EXACT taxes etc.
IF you earn $100,000 in Tx and have NO OTHER deductions, then you pay Fed Taxes on $100,000. In Montana, with the SAME Gross $100,000, you pay Fed Income Tax on $89,000.
Therefore, 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.
you ever hear of the word "fair"...
George Nethercutt has been pushing for this for years....
How did that (the standard deduction) work out if you saved a lot of money? Was it a pretty good deal? I'm too young to remember.
This is good for Tennessee as well - no income tax, only sales tax (which the leftists whine about anyways).
Perhaps, but I think a decent argument can be made to the contrary since states with no income tax do not benefit from the tax law allowing state income tax to be deducted. It will see the courts though, no doubt.
According to the Senator, you can fill the shoe boxes with reciepts or take a standard deduction that will be set by the IRS.
For those paying Federal taxes...cars,rv's,boats,tv's, etc. just became 6-8% cheaper.
We have the worst of both worlds here in California- high state income taxes and high sales taxes- every little bit helps though.
that's right - we get hit with everything here. a toll bridge here will soon cost $9 to cross - can I deduct that? that's a tax, isn't it?
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.
