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 ...
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How many people in California do you suspect have less than $600K mortgage debt?
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BTW..do you have a mortgage?
I don't, so WHY should I* have to pay for yours?
Again, why should we be encouraging people to take on debt (mortgage) or encouraging high taxes at the local level?
Property taxes and state and yes,in some places,city taxes, for many, far exceeds whatever the benefit of doubling of a personal deduction will be.
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Try to buy one for less than $800K!
You have no contact with reality.
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Sorry but I am nowhere near the top 1% and if the SALT is removed and the standard deductions is doubled I’ll pay significantly more tax than I do now.
This and the rediculous claims by republicans on this deduction are Horse crap.
Why are you whining about SALT if you don’t have a mortgage? Yes I have a mortgage interest amount higher than the current standard deduction for a married couple even before state/local/property. I pay more in state income tax than the standard deduction excluding property tax and mortgage interest. But unless you assume really dumb stuff...like the 25% rate starts half way through the current 15% and the 35% rate starts about the 28%, I still come out ahead, as will nearly everyone but those with massive state, local, AND massive mortgages. I paid $60k in taxes last year in total. This year will be ~$80k and next year will be over $100k at all levels.
Please post ONE article backing up what you are saying. In addition to the one linked at the top (which I didn’t post), I’ve linked 4 and I can find “back up” sources for every one of them.
I heard someone on the Radio today say that you can currently Deduct the State Taxes you pay from your Federal Taxes.
Of course that is a falsehood.
You can only Deduct the State Taxes you pay from the Reportable Income to the Federal Government, not from the actual Taxes paid to the Federal Government.
Example, if you pay $1,000 in State Taxes, your reportable Income is lowered by $1,000. In a 15% Tax Bracket, you pay $150 more in Federal Taxes under the new GOP Tax Plan, not $1.000 more.
The bigger issue (to me) is the Elimination of the Personal Exemption which is combined with the Standard Deduction under the GOP Tax Plan. (I’m also not sure if the Personal Exemption stays if you Itemize like it does today).
It applies only to the Single or Joint Filers, but if they have Children they lose the current $4,600 per Child Exemption and gain maybe $2,000 with the increased Child Credit.
I think the Standard Deduction should be $12,000 for each Tax Filer and $6,000 for each Dependent Child under 18.
Then a Family of four pays no Federal Income Taxes on Income below $36,000.
I think that would help mitigate the effects of eliminating the Deduction of State Income Taxes.
The Home Mortgage Interest and Charitable Donations Deductions are the Third Rail IMHO. They ain’t going away.
Just because you found some things on line, especially the stats put out by the Fed Gov, does NOT mean that those figures are correct.
I'm just fine; you aren't! You and the other DOGS IN THE MANGER here, who are drooling over sticking it to others, via taxes, are the mentally ill ones.
For 10% income earners in about 6-8 states, that is true. However, when you combine that with margin rates coming down, very few will see a tax increase unless you have all of what you said, make 10% income AND have a massive mortgage.
He pretends to be an "expert" on this topic and isn't!
The only one acting hysterical on this thread are two people who haven’t linked to a single article to back up anything they are saying. Keep clutching those pearls, NoPardons! You can think I don’t know what I’m talking about all you want. I could care less.
The $4,600 child exemption @ 25% marginal rate is $1,150 in taxes, so they’d come out $850 ahead if your $2k extra credit is correct.
But I bet YOU have one and no matter what it is, you'll STILL get to deduct it...no matter WHAT SOME UNION CAME OUT TO SAY!
My property taxes, alone, are much more, sadly, than the new, supposed doubling of the deductible; ergo, that doubling won't help me at all and then there's still my state taxes.
BRAVO!
My mortgage interest will not remotely come close to exceeding the new married standard deduction so no I won’t benefit from it. And if you pay more than $12k/24k/year in property taxes, I highly suggest you move. You can move just south of Charlotte in a 2500 sq ft home for less than $1,500/yr in property taxes.
Rich states tend to pay out more in taxes than they get back though. How are they being subsidized ? Id hate to see anyone’s taxes to go up though, so just lower the rate to make up for it.
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You control freaks all have “sources,” and they all smell like last week’s salmon.
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