If anyone will see an increase in their taxes it is the liberal States.
Posted on 10/28/2017 2:30:22 PM PDT by TBP
What do you call a tax break that delivers 88% of the benefits to upper-income families and subsidizes rich states at the expense of poor ones? If you're a Democrat, you call it a sacred cow.
One provision of the Republican's tax-cutting plan that has drawn intense opposition from Democrats is the elimination of state and local tax deductions for those who itemize.
Rep. Nancy Pelosi said it was "an insidious effort to raise taxes on middle class families … across America." Sen. Ron Wyden said that "hardworking middle-class folks are not going to appreciate Congress double taxing them." New York Gov. Andrew Cuomo called it "a pure tax increase."
So what is it that Democrats are valiantly trying to protect?
This SALT deduction, as it's sometimes called, will cost the federal government $1.8 trillion over the next decade, according to the Tax Foundation.
And the benefits go almost entirely to upper-income families.
(Excerpt) Read more at investors.com ...
It sure will; too bad that some people here can’t see that. They’re more interested in “hurting” lefties. What they refuse to comprehend, is that a LOT of fellow posters/Conservatives, or at least GOP voters, who aren’t on this site, also live in high tax states and THEY will be severely punished too, by this crap.
Yes that is true . . . but this is talking about the new tax plan . . . I’d hate to walk in their shoes at poverty level.
For everyone else flat rate.
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sparklite2 is correct, but what they are up to will also eliminate the property tax deduction for the middle class.
This is a bad deal for anyone who holds realestate in their own name, rather than a corporation.
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If this goes through ( which I doubt it shall ), it makes a LIE out of the whole TAX CUT promise!
I don’t file itemized, so I’ll take your word for it.
But please consider this from the IRS...
Topic Number: 503 - Deductible Taxes
There are four types of deductible nonbusiness taxes:
State, local, and foreign income taxes
State and local general sales taxes
State, local, and foreign real estate taxes, and
State and local personal property taxes
https://www.irs.gov/taxtopics/tc500/tc503
Some deserve the help; sadly, far too many do not, but get it anyway!
The top 20% now pays something like 95% of all taxes. That STINKS and this outline is going to make things even worse. It also hurts the people whom Trump promised to LOWER TAXES for!
Nothing done to rein in the ObamaCare premium costs ( which keep rising ) and now this.
Thankfully, I don't have to worry about the former, but the latter is going to KILL me and many others, should it wind up in the final Bill.
You aren’t paying a tax on a tax. You have a federal and state tax rate - they are two separate things, just like sales and property tax are separate (and you can’t claim sales + the others even now). It is ridiculous you were ever able to deduct for other taxes or mortgage interest in the first place.
Whoever stuck this into the outline should be hung, drawn, quartered, beheaded and the head tarred, stuck on a pike, and cemented into the steps of the Capital building!
Define middle class. Hardly any middle class would be effected with doubling the standard deduction AND lowering the absolute rates.
With standard deduction about to double, only those in the top 10-15% of incomes or living well beyond their means on a home will see any benefit from a SALT deduction (I benefit from a SALT deduction today to the tune of about $2,500/yr federal, but doubling standard deduction keeps me even and the rates coming down drops me).
If anyone will see an increase in their taxes it is the liberal States.
This is a true statement. The article is also true. If the Democrats really cared about the "little guy" they would be fighting to get rid of SALT, just like the article suggests.
And there is lower, middle, and upper middle classed, all inside "MIDDLE CLASS"!
So your query is a stupid one.
Doubling the standard deduction will NOT help all that many, either, no matter what you wrongly assume.
OH HORSESHIT!
What a ridiculous statement. Only 30% of the country itemize at the current level. What % do you think it will be when it doubles? 5%? Less? Why should the country subsidize high local taxes and encourage a ton of debt via a mortgage?
If the democrats actually cared about the little guy, they would be in favor of eliminating SALT of which virtuall all of of the benefit goes to the top 20%, yes or no?
Yes, they will likely add a 4th tier at $1m. It's likely the same top rate as today, it'll just start at more than 2x what it does today, so even someone making 1.2 million would see a 4.6% tax cut for $500k of income and larger in their first 500k.
My effective tax rate is always lower than 10. Why would I want to pay more?
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