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 ...
PS I am upper middle class, or lower upper class. I made top 4% income last year. Will be 3% this year and 2% next year.
Bump
But you CANNOT deduct sales tax - even if you itemize. So there is NO benefit to Texas from this SALT deduction!
Correct. I'v always claimed sales tax living in Washington, but now that I'm in Arizona I'll have to see which one is higher and claim that.
Obviously YOU are gleeful that it'll hurt your supposed "enemies"; so now other CONSERVATIVES are your enemies, I guess. Well count me in that group, because yes, I am your enemy!
Why should the country allow you to take off mortgage payments? People should live within their means and NOT borrow!
Worse still, is that people who pay NO taxes get a "refund"! A "refund" ?
There are lots of things wrong with the Fed Taxes as they stand now, but this is NOT a "fix"! And neither you nor I nor anyone else knows what the brackets will be, how many of them are to be.
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Nonsense!
I easily have 4 or 5 times the standard deduction.
The standard deduction is for lazy fools. (or the stingy that give little or nothing to Yehova)
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If anyone "cared", Dem and GOPer, there would be a FLAT TAX, for EVERYONE; no exceptions at !
NOBODY, EXCEPT THOSE WRITING THIS/SEEING IT IN CONGRESS, HAS ANY IDEA WHAT'S IN IT, RIGHT NOW!
Wrong!
You have the choice of deducting state income tax, or sales tax.
Out of every $ that goes to Washington from NJ we get .7 back. F The South
Yes, it could change, but it has been ‘leaked’/”whispered” many times.
because for every dollar we send to Washington we only get .7 back
You do realize a personal anecdotal of one does not prove anything, right? Even per this article, those making over $200k/year (top 4% of households, or 2% of individuals) see an average SALT deduction of $6295 in taxes, which is about $18k pre tax at a blended marginal federal rate of say 35%. Given the standard deduction will go up by around $12k, all but the very top income combined with living in a very high state AND local and high mortgage will be hurt. Why should we be subsidizing those things in the first place?
There is no personal income tax in Texas. At all. So the only benefit to some very wealthy Texas taxpayers, almost certainly concentrated in and around Dallas Austin and Houston, has to do with real estate taxes on their personal residences, which I know for a fact in Texas have lower rates then for business property. Thus, the benefit of the SALT DEDUCTION IN TEXAS IS EXTREMELY LIMITED.
You’re in New Jersey? My god, man, I’m so sorry.
Please forgive me for ever tweaking you.
I couldn't care less what your earnings are and may yet be, that's NOT the point at all. What IS the point, is that people have planned for using the current deductions and will now be hurt by this proposed change.
But since you earn SOOOOOOOOOOO much and don't believe that you'll be harmed any, by this provision, then pay more to the government; there is a line on your tax return to do so, and spare those of us who happen to have large state taxes and property taxes. Do it for your fellow man. ;^)
Whatever else can be said about the deductibility of state/local taxes, it must be said that it is most valuable to people living in the highest-tax jurisdictions.And it is, consequently, an engine for the promotion of high state/local taxes.
If my taxes go up (which is very unlikely) with a great simplification of the code and lower rates across the board, I’m perfectly fine with that. There is ZERO reason to subsidize local taxes and increased debt.
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