Trump's tax plan is ALREADY in trouble with his own party as plan to axe state(T)

dailymail.co.uk ^ | 9/29/2017 | David Martosko

[rktman]

As President Trump prepares to sell his tax plan to the nation's manufacturing lobby on Friday, his best-laid tax plans have already drawn objections from some fellow Republicans who are fuming over the decision to end deductions for state and local income taxes.

The situation will pit the White House against members of Congress from states that pile high income taxes on top of what the federal government takes from paychecks.

High-income Californians, for instance, pay as much as 13.3 per cent of their income to the state in addition to their federal taxes. New Yorkers can pay up to 8.82 per cent.

Just seven U.S. states have no personal income taxes, including Texas, Florida and Nevada

[Mariner]

“Because that’s a tax on money I spend that has already been income taxed.”

That’s why the state sales tax is deductible on your federal taxes, in every state in the union.

[Mariner]

“Why should the rest of the country subsidize the liberal states that have the highest taxes.”

Abject ignorance.

Everyone who itemizes will pay higher taxes, no matter what state they reside in.

It’s just that there are more high income folks in CA and NY. That’s the only reason those “states” benefit the most.

[vette6387]

“Of course, you don’t itemize because you don’t have sufficient income.”

With an income “north of $200k,” we do itemize, because we do have business expenses, but with various deductions, we don’t have a big tax bill. And I suspect that that’s the case with the super rich here, and even if they do pay a portion of their taxes at the top marginal rate, it really doesn’t impact their lifestyle. Plus they’re liberals so they see it as “their duty” to pay taxes right?

[Paladin2]

Everybody in the gov’t/media likes to talk about the effect on the “average” person and then to trot out their personal favorite individual example as proof about the wisdom of the “change”. They are mostly concerned about the aggregate effect on the gov’t and themselves (e.g. Congress exempt from Zer0DontCare).

Of course ~ 50% pay Zer0 income taxes and many get a welfare check (”refund”) through EITC.

The deductibility of State and local taxes of many kinds has strong philosophical arguments on both sides. It’s obviously best for any peep to have their total taxes go down.

The current situation is so complex that the only way to get change is to make it more complex. So it’s a total mess and there will be plenty of winners and losers. Raising the tax rate and the standard deduction is kinda nuts IMHO, but it is a way to “buy” support from many.

Stability of the system is good for planning purposes though some of the complexity drives suboptimal decisions by individuals against the Economy in general.

What to do? Enjoy the squawks from libs in high tax States.

[Mariner]

“So, even CA GOP expect taxpayers in KS pay extra tax so they can deduct their higher state and local taxes.”

Sheer ignorance.

I’m starting to realize the reason it abounds to such an extent on this site is that almost no Freepers ITEMIZES their returns and file a Schedule A.

People: No taxpayer anywhere is subsidizing a CA taxpayer (especially) or any other taxpayer.

Everyone who itemizes, no matter what state they reside in, will lose under this proposal.

If a CA taxpayer is forced at the barrel of a gun to pay $20,000 in Federal Income tax, and a Oklahoma taxpayer making exactly the same salary is forced to pay $21,000 in Federal income tax...How the hell is it that the taxpayer in OK is subsidizing the CA taxpayer?

Oh, and I DOUBT most vehemently, the difference is that great.

OK has either a sales tax or an income tax or both. EITHER of them is deductible for the taxpayer that itemizes.

Along with their mortgage, property tax, excise tax on their boat and car etc.

CA has paid more in Federal Income Tax than it receives in all forms of federal payments/benefits. And has for over 40 years.’

And it’s all the freeloaders in the red states that benefit from that:)

[Pelham]

“Why should CA suck in billions in federal money when all their citizens get a pass on their federal taxes?”

Because how else will Mexico get their welfare?

Illegals easily siphon off more than a billion in California alone.

[TheBattman]

I would prefer a much lower tax rate and just eliminate most deductions altogether.

[Mariner]

“Enjoy the squawks from libs in high tax States.”

Again, this is the GOPe talking point.

EVERY SINGLE TAXPAYER in EVERY STATE that itemizes will lose.

So, you’re OK with the “tax the rich” meme of the progressive left because you don’t make enough money to itemize?

[vette6387]

You might want to take a look at this chart (scroll down a little to see it):

https://www.theatlantic.com/business/archive/2014/05/which-states-are-givers-and-which-are-takers/361668/

Virtually ALL of the big blue states give the Federal government more in taxes than they receive back in Federal payments.

And just look at South Carolina, which gets back almost $8.00 for every dollar they pay in! Even “true blue” Texas is a taker! Virtually the entire tier of Southern States get at least twice what they pay in. So lets cut the crap about what kind of state pays and what kind gets back in return. CA is a liberal $hit hole, but we are by no means freeloading off the rest of the country. I’d be for doing to the “freeloader” states what Trump is proposing for the UN. Start paying your fair share and quit feeding off of the government tit! Especially Texas, with your sanctimonious notion that you’re so “good” at everything. You need to get along without any subsidies, particularly from states like California that you love to hate.

[street_lawyer]

Is it curious that republicans want to keep deductions for democrat states like NJ, NY, CA etc? Why?

[roadcat]

The concept is simple: You don’t tax money paid in taxes.

Oh, were that to be true...

Correct concept, but we all know we pay taxes on taxes, it's just that they're hidden away. We're supposed to get the deduction because we're taxed only on "discretionary" income, the amount after deducting state & local income taxes.

There are so many hidden taxes in "fees" for this and that, as well as sales taxes on items that have been taxed repeatedly before making it to the consumer that hikes the retail price. Not to mention bad retail practices of charging sales tax on added fees (some restaurants calculate sales taxes on added items like tips and local taxes).

We're all sick of the double-taxation that occurs everywhere. Wish we could get down to 10 percent maximum tax to all of government, but wishing won't help. Only thing to do is to go Galt as much as possible.

[street_lawyer]

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming, don’t have to pay state income taxes. By giving a blue state domicilary at tax deduction that means taxpayers in Florida are subsidizing the overspending blue states.

[vette6387]

““Why should CA suck in billions in federal money when all their citizens get a pass on their federal taxes?””

Because we don’t! Go look at the chart in Post #69. And for once, don’t let your personal hatred for a state and it’s people that you don’t really know much about, let your moronic, untrue notions color your posting.

[rxsid]

Nobody I know in our solidly red district "agree" to higher taxes.

There are many like us who will oppose taking more of our money.

Since Alabama is a small, red state and has been in the news lately, lets compare the average federal taxes paid per person vs federal dollars received back:

Alabama
  Federal Taxes Paid vs. Federal Spending Received (2005)

$5,434 paid to DC per person.
$1.66 received back from DC per $1 tax sent.

California 
Federal Taxes Paid vs. Federal Spending Received

$8,028 paid to DC per person.
$0.78 received back from DC per $1 tax sent.

Remove the millions of foreign nationals (legal & illegal), and the numbers in CA are skewed even more.

https://files.taxfoundation.org/legacy/docs/ftsbs-timeseries-20071016-.pdf

 

Average state and local tax deduction by congressional district

This framework for a tax plan, if it were to go through as is, would likely put Wisconsin, Michigan, Ohio and Pennsylvania back into the (D) column. Yeah, national security and SCOTUS judges are massive issues with (R). Reaching into our wallets and taking more of their money is personal. The national (R) party best tread lightly on this issue and rethink screwing those of us conservatives in blue or purple states.

[Pelham]

“Only Demorat states have confiscatory income taxes like California”

I beg your pardon. We are a Latino Communist state.

‘Demorat’ is for wimps.

[street_lawyer]

“TX has no income tax and GOP expect them to pick up the slack so NY and NJ taxpayers can deduct their high state income taxes from their tax bills, huh?
What’s so fair about that? “

You got it!

[vette6387]

“By giving a blue state domicilary at tax deduction that means taxpayers in Florida are subsidizing the overspending blue states.”

Yeah, well according to the chart I posted in #69, Florida is the third biggest hog at the FedGov trough. You’re getting more than four bucks in Federal largesse for every buck you pay in federal taxes, so quit your bitching!

[oblomov]

Get rid of the mortgage interest deduction.

[oblomov]

And property taxes are currently deductible as well.

[spokeshave]

Yeah...in my case it might finally convince Mrs Spokeshave to move the family out of CA.