Posted on 09/28/2017 12:54:19 PM PDT by alancarp
Homeowners in tax-happy blue states could find a bitter pill inside the new Republican tax plan, which would kill their ability to write off the property taxes that can cost even middle class families more than $10,000 per year.
The plan rolled out Tuesday would keep in place deductions for mortgage interest and charitable donations. But, in a move to help offset other major cuts in the plan, many other itemized deductions would be scrapped. ... New York Democratic Gov. Andrew Cuomo slammed the proposal, saying the loss of the deduction could cost New Yorkers more than $17 billion.
“It would penalize this state,” said New York Gov. Andrew Cuomo, who said the “death blow” could cost residents of his state a collective $17 billion. “It is the height of hypocrisy. You have an administration saying, 'I want to cut taxes,' and now literally they want to tax you on the taxes that you pay.”
(Excerpt) Read more at foxnews.com ...
The effect of this will be a steep decline in real estate prices, possibly a crash.
“Feds collect taxes from states. My state collects their federal obligations plus their cut from me”
That’s the best system all around, just eliminate all direct federal taxes to individuals and let the states figure out how to pay the bills.
However, I don’t think any national or state politicians are keen on that idea, so it will probably never happen.
your taxes would involuntarily go down as property values would get demolished then everyone in the towns would demand a reassessment for tax purposes...
Plenty of other places to live.
Everyone wants tax reform until their own Ox is gored.
Oh...and gov, that's not taxing taxes...it's taxing income.
Not sure how to answer that; would be good for all to have lower taxes, but you likely pay a higher state tax or sales tax than I do. That is likely deductible for you.
Unfortunately the only other place I’d want to live is going to be overrun with Puerto Ricans.
http://www.freerepublic.com/focus/f-chat/3590076/posts
This is a case of the Feds subsidizing a business. Chrony socialism at its worst. Stop subsidizing property taxation now!
I live in NJ, too.
Just additional incentive to get the hell out of here.
Moving to a red state ASAP.
Don’t worry, Red Staters, I’m a died in the wool Conservative.
I won’t be bringing any crazy ideas.
I’d rather they take the mortgage interest deduction target than the property tax. The property tax keeps going up and the MID keeps going down. I paid more in prop tax last year than I did in interest.
Ok
Just that, the status quo. Remember that President Trump wrote a book called The Art of the Deal. It’s a very good technique to bring something to the table that would be nice for you to get, but terrifies those you are dealing with, so they would go far to not have to deal with it.
If you don’t bring that, then you will need to surrender something you actually care about. But in return, they don’t really get much of anything. Yet if they are obstinate, it makes a real threat to them.
The strategy is that President Trump can approach the RINOs and say, “You better vote for this bill or I will bring Democrats on board.” At the same time he tells the Democrats that “unless you are on board, I have enough Republicans to pass this and the Democrat states are boned.”
Between the two he will get the bill passed.
IF your income is high enough to be paying big bucks in state taxes you aren’t in the 10% tax bracket for your top bracket. So you’ll be moving down in your percentage....wherever you fall. 7 brackets to 3 will be to your benefit.
The correct solution is to make property tax illegal.
IMO, property tax is simply government extortion. Nice house ya got there. It would be a shame if we had to confiscate it because you didn’t pay our annual extortion fee.
And if when he brings the Democrats on and the Democrat states are still boned, then what?
Perhaps. It all depends on where those brackets fall. Right now under the plan as it now stands my taxable income will be a lot higher since I can't deduct state and local taxes and I lose the personal exemption. The 25% bracket had better kick in a lot higher than it does right now or I'm going to be paying higher taxes.
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