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 ...
See post 18.
I’m sure the government drones appreciate your support of tax increases.
Actually, you do get to deduct your state sales tax. Here in Washington State, we have a high sales tax and no state income tax so I am intimately familiar with the rules.
Kiss my ass, I was an early Trump supporter. I wanted a wall, tax reform, obamacare gone, and no more wars. He offered up Obamacare light, gave up on funding the wall (well, maybe he can still pull that off), seems more and more interventionist, and his tax plan eliminates deductions and raises top rates. For god’s sake, the swamp is draining him it seems.
“I’m sure the government drones appreciate your support of tax increases.”
Just as I thought...you don;t have a clue of what you are saying or you’re just lying. I happen to love tax decreases and deductions...we are not high income people.
So please tell us...how is the tax plan going to increase your taxes so much?????
And since you don't know what his plan is, why are you so adamant it's great?
“his tax plan eliminates deductions and raises top rates””
What deductions are you crying about...he keeps the mortgage and charity deductions and show me where it raises top rates.
He’s been in office for 100 days, would you like him to cure cancer as well, you spoiled brat.
“But I do lose deductions”
What deductions do you lose???? And what rate is higher than the current top rates???? I do know what the plan involves, maybe you don’t.
I disagree. Ability to deduct property taxes benefits every homeowner.
BUT, I agree with disallowing it on federal returns for the simple reason that it will force blue state citizens to wake the heck up and pay attention to what their own state government is taxing them. Nobody cares when it's a write-off because they just deduct it. If it's not deductible, people will be forced out of their apathy with a jolt, and into some reality-awareness of just what the state eats for dinner - our lunch!
“Also look at his plan, it raises the top rates. I don’t know who’s in those rates, maybe me, maybe not. But I do lose deductions. A simple flat tax would solve it but nope, he didn’t even try.”
Hmmm...
“The number of individual income tax brackets would shrink from seven to three — 10, 25 and 35 percent — easing the tax burden on most Americans...Individual tax rates currently have a ceiling of 39.6 percent and a floor of 10 percent...
...Mr. Trump wants to double the standard deduction for individuals, essentially eliminating taxes on around $24,000 of a couple’s earnings...
...But the president would leave in place popular breaks for mortgage interest, charitable contributions and retirement savings.”
So...
Raises top rates? False.
Lose deductions? Some, but the standard deduction doubles.
Flat tax? I like it, but the 50% who pay no taxes would scream bloody murder, as would the many people who pay no taxes but get large ($5,000-$9,000) “refunds” via EITC and Additional Child Tax Credits. Not going to happen.
Depending on where you live being a six figure earner can mean different things. We live in S. CA.
We report over six figures because we have been raiding our Taxable IRA’s to pay our $24,000 a Year Health Insurance Premiums (thank you Obamacare) and our $2,000 a Year in Co-pays for Doctor visits and Prescriptions.
Add in Mortgage, Property Taxes and House Insurance and we are out $60,000 a Year before we start paying for anything else. You know, like Food, Cars, Gasoline, Insurance...
Started getting SS late last Year which helps, but I don’t get that much since I took it early. Unfortunately, since it looks like we are big money makers, most of that same SS is Taxed. The only bright spot is that CA does not Tax SS.
Before the inevitable “why don’t you move” comments, we have Family and Employment obligations here. I am just starting to look and see where we might end up after we sell the House, but it isn’t an option for us right now.
You know the old line looking good on paper? Well, that’s us. Not sure if the new Tax Plan will help or hurt, but the way it’s going we won’t even be dealing with it until 2019.
I think there is also a 3.1% Obamacare Tax on top of the 39.6% for top earners. Not sure when it kicks in.
I have no clue what other states do, but in Calif, renters get a 'renters credit' deduction (was around $600 maybe?) on their state taxes (which should more than compensate for any share of prop taxes renters pay as part of their rent).
Renters usually don't pay for county utilities (street lights, sewage, infrastructure taxes) or garbage (now about $55/can), or special assessment taxes (fire tax - yes we have that now) or for upkeep like carpet, interior/exterior paint, or reroofing or normal repairs like clogged toilets (which a landlord is -Required- to have a 'professional' fix). If there's any damage to the premises beyond the security deposit, owners are on the stick for that, too. So renters are actually paying less in rent payments than the actual cost of maintaining the property were it their own. Which is why they rent I guess?
You are correct, I am guilty of making an assumption that since the rate I'mm currently in has gone and I'm closer the next one UP that I probably go UP. Perhaps I'm wrong, I wish he would tell us what the plan actually is. I liked Bush's plan which wasn't complex or required us all to wait to see if we did better. EVERYONE did better. Trump has never made that claim about this plan but who knows? As some have pointed out, nobody because the administration hasn't told us for some reason. I guess we have to pass it to know what's really in it.
In response to this article, we talks about the elimination of a protection against double taxation via a deduction for state and local tax, some here seem to think it's okay if some people - perhaps those richer than them as one here accused me of being - pay higher taxes. They call me full of excrement, call me unpatriotic and a spoiled brat for preferring a plan that isn't complex, a mystery, and potentially an increase. That surprises me. I'll be clear: I do not support tax increases. Period. They are bad for the economy as a whole because they decrease revenue and reduce discretionary spending; and they are bad for us all as individuals. If Freepers think that's wrongheaded than I'm pretty surprised because it used to be universally accepted here.
I'll go ahead and let the rest of you heap abuse on me now.
I wish you good luck...I hope everything turns good for you and your family...
“How did Texas get lumped in with California, New Jersey and New York?”
I wondered the same thing. I live in Texas and we don’t have a state income tax. But we do pay property taxes which presumably are paid in all states. However, our property taxes here are high. Don’t know how ours compares to the high income tax blue states though. However, concerning The new GOP tax proposal, even though I would loose the property tax deduction I would just about break even due to the standard deduction being doubled. Anyway, I’m for the proposed GOP plan. Also hope it does away with all the deductions, credits, breaks for oil, agriculture, solar, wind, sun, cow farts, etc, as well.
“I’ll go ahead and let the rest of you heap abuse on me now.”
If it’s anything like his campaign rates the 10% goes to $100,000 for a married couple. That means you would save 5% of of $57,000, then save 15% of $25,000. That’s a pretty good start.
Maybe if you were more forthcoming about your income?????
I disagree. The Trotskyites need to go to war with the Stalinists in NY. Pass the popcorn please!
“since the rate I’mm currently in has gone and I’m closer the next one UP that I probably go”
You’re acting as if your whole income would go to the higher rate, forgetting all the money you would have saved by the time you get there.
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