“...The deduction overwhelmingly benefits six-figure earners...”
Mo wonder Chuckie Shumer was crying so loudly about it this morning....
There was a time when you could deduct interest on Credit cards and every dime of medical expenses. People forget.
How did Texas get lumped in with California, New Jersey and New York?
It is double taxation. You are paying taxes on money that was taxes.
New York State needs bankruptcy. The government in NY State can not change otherwise.
Otherwise, the state will continue to become a hollowed-out shell, with a very few crony-capitalists trading fake federal reserve money and debt in NY City, with the remainder of the state sliding further into a swamp of progressive, statist poverty and decline.
I said to the Deplorable Men's Diner Club last night that this is a throw away item. Trump goes to the High Tax Blue States who are all infested with Sanctuary Cities, get rid of these and I'll drop this tax change. It is so Art of the Deal Trumpian and the young lad that was the only one who has read The Art of the Deal was smiling and nodding and many others agreed.
Trump will let this play out.
High taxes in states no longer a fed problem.
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.
At its most basic level, the federal state and local tax deduction (SALT) is a hidden federal subsidy for services the high tax states provide within their states.
Those services are subsidized by the federal government through the collection of higher taxes from residents in lower tax states that do not provide those services.
Why should someone in a low tax state like Wyoming with the same income as a person in California pay more federal tax on that income than the Californian?
Doing away with the deduction is the fair thing to do.
If California and New York want to provide more government paid services to their residents the people in places like Florida and Texas shouldn’t have to help subsidize it by paying higher federal taxes than a New Yorker with the same income.
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.
So the rich liberals really don’t want to be taxed more?
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!
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!
Rich states? They’re ducking federal taxes with high state taxes. Then they get a disproportionately high percentage of federal tax dollars paid to them.
What the tax break means is that it is being subsidized by taxpayers of states with lower state and local taxes, because without that perk the more expensive states would wind up paying more in taxes and the tax rate could be lowered, with the net revenue effect neutral.
In fact, doing it exactly that way as a tax change all on its own would prove the point - federal tax rates could be a bit lower, for everyone, without deductions for state and local income taxes. That would also prove the point that the blue states higher deductions are being subsidized by everyone else.
If this is eliminated then states effected should permit federal taxes to be deducted from income for state taxes, otherwise you have double taxation. Extreme example: Pay 51% in state taxes, 50% in federal— take out loan to cover the extra 1%. I thought this was why they implemented SALT.