Posted on 04/30/2017 4:46:57 PM PDT by MaxistheBest
The Trump Administration’s stated intention to eliminate the state and local tax deduction (SALT) is likely to meet major opposition from big blue states’ Congressional delegations. The New York Times reports:
To some, it is a tax on blue-state liberalism. To others, President Trump’s plan to end the federal deduction for state and local taxes would eliminate a costly perk for the wealthy.
But to many taxpayers, the deduction is a cherished break that can save them thousands of dollars in double taxation.
Mr. Trump and House Republicans, riding a wave of conservative and populist sentiment, are pushing to end the provision. Yet they must overcome a long tradition and powerful opponents, including Republican and Democratic officials in wealthy, populous states like California, New Jersey, New York and Texas.
The deduction overwhelmingly benefits six-figure earners. The benefit is largest for affluent people living in states that impose high income tax rates, which are much bluer than average.
(Excerpt) Read more at the-american-interest.com ...
New Hampshire property taxes are very high, double the rates for maine and vT
So people who live in a state that taxes income get a Federal tax deduction, but people who live in a state that raises revenue through a sales tax do not?
How about we change it so that ALL state and local taxes are exempt from Federal taxation?
See post 15.
Former 'prisoner' of soviet Red Hampshire here...yes, they do. Taxes so high it makes it nigh impossible for lower and middle-class people to save up enough to escape.
Screw liberals. Having said that how do you pay tax on a tax. My income is taxed on income the government gets. F’ed up IMHO.
When they remove the SS wage cap without adjusting benefit I say ouch again. (Not like it ain’t broke anyways) I’m tired of pulling the wagon. People old and young need to get out of the wagon.
...then there are the taxes you pay when you register your car...OMG!!!
I am for that. But each state has to do that. Its a states rights level isue, not a national one. If a state decides todo the right thing for its citizens on double taxation, those people benfit.
Its a state issu because each tate has the power to detrmine what a persons state agi is, and it is amdiferent formula than what fedgov agi is. And it should be because if the fegov formula ever gets out of hand the states wont necessarily get equally out of hand.
Say the dems come back into power and go full blown socialist. If we have them setting tax policy and all states are under national mandates then states ability to set their tax laws are totally gone.
It would be like what happened to states rights with gay mariage, but withstates tax rights. Gone.
I'm referring to the provisions in the Federal tax code that allow people to deduct certain state and local taxes on their Federal tax return. That's an issue with the Federal tax code, and has nothing to do with state governments.
I think you're referring to state income tax codes that may allow people to deduct their Federal income taxes on their state tax return. I agree with you 100% that this should only be legislated state by state -- with no need for uniformity across the country.
Sorry for any confusion on this, if that's the case!
There is a big push here in New Jersey to reduce or even eliminate the death tax. Even many Democrats support it. Moving out of this state upon retirement is pretty much a standard practice for anyone who has a net worth in excess of a million dollars or so. This means the state doesn’t get nearly as much revenue from the death tax as they anticipated, and they lose all the economic activity when billions of dollars of net worth leaves the state every year.
Maybe. :)
But any federal deduction i can get, is also one open to anyone else. We all have to meet the same qualifications for it, regardless of state. If that means owning a home, we have to have a home.
But that isnt diferent for people if they are in different states. You have to own a home, wherever you are.
I dont get any business tax deductions if i dont have a business.
Right — but does that really have anything to do with states’ rights? And does it make sense to have states implementing tax policies based on the Federal tax code? I don’t know about that.
“Im not a democrat and Trumps crappy tax plan is going to raise my taxes.
A lot. I’m not happy. We still have Obamacare, there’s no wall coming, and he’s raising taxes on many. He’s losing me.”
I’m thinking you’re FOS...please explain to us how “that crappy tax plan” will raise your taxes so much, when you don’t even know the levels of the brackets yet!!
And as far as the wall and Obamacare they are a work in progress. I doubt you were ever “with” Trump, sop how can he lose you.
“Trumps crappy tax plan is going to raise my taxes.”
And if it’s because of the state tax deduction, then 2 things...you’re making a ton of money if it’s that important to you, so cry me a river. And if it really bothers you so much, here’s an idea.....MOVE!!!
So people who live in a state that taxes income get a Federal tax deduction, but people who live in a state that raises revenue through a sales tax do not?
To deduct any taxes you must itemize deductions. State and local income taxes, property taxes (real estate), property tax (not real estate, e.g. vehicle value), state/local sales taxes (either by having receipts or based on your reported income via chart) and adding any large sales tax (e.g. new vehicle sales tax). They are all deductible.
So the rich liberals really don’t want to be taxed more?
Incomes on average are significantly lower in Texas than the other states mentioned
My maybe was that we were considering two different things. :)
I think we are in agreement.
Here in the Northwest, this fantastic for Washingtonians... We have NO state income tax.
However, neighboring Oregon has an income tax...but no sales tax. So this will hurt those rich liberals in Portland & Eugene!
So states like New York with high income AND sales taxes screw their people under the Federal tax code.
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