Illinois (and the other deep blue states) are losing taxpayers, too!
=>"California, Illinois, and New York Keep Losing People to Other States"
Posted on 11/02/2017 7:21:40 AM PDT by GIdget2004
House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.
In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.
The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.
The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.
Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.
“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.
Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
I did not misread it. It is as you state percentage of people in a state. So if Mississippi has 2 million people, and 20% are on SNAP, that’s only 400,000. If CA has 40 million and 10% are on SNAP, that’s 4,000,000. I can play this math all day and CA is still sucking more than Mississippi. Take this and translate it to number of illegals in the school and medical system. CA will be the ‘biggest loser’ by a mile. How much federal aid do you think the Cal college system is milking compared to Mississippi? How much road assistance and road miles that get federal aid compared between the two states? The list goes on and on. Mississippi may be poorer, but the overall federal aid is much higher to CA. And Mississippi isn’t asking federal dollars to build high speed trains that no one will ride.
Amen. And that’s without factoring in that CA has declared itself a Sanctuary state and the demand for public services is incalculably high and growing.
If they don’t pass this, then forget it. The dems and the media know this. So, it may come down to a couple Senators blocking the bill. Corker, McCain, Flake.
“I can play this math all day and CA is still sucking more than Mississippi. “
You give no credence to the other side of the ledger.
How much more does CA PAY to DC?
That said, it’s been widely known and accepted for decades that CA pays more in Federal Income Taxes than they receive back in expenditures...of any and every kind.
If fact this has been the case since WWII. Decades.
The same applies to NY and NJ.
And there are 36 states, most of them red, that receive more in Federal expenditures than they pay in income taxes.
You can choose to believe that or not. If you choose not to believe it, it’s emotion that keeps you from obtaining knowledge.
CA
Think it was this one
If not, it’s one of the other links in post 270. You might note the map here, Illinois is the 51st state, they include DC
Different sources will give slightly different numbers, but in totals and per capita, it’s a serious problem. You could also look at the two wiki links, one for spending, one for taxes paid. Should note that like NY and NJ, Illinois is also a high income state, thus sending more per capita than low income states to DC. It will provide a powerful political arguement. Which isn’t needed in Illinois, but without other high tax midwestern states, Trump would not be President.
GA receives about $1.08 for every dollar in Federal Income Taxes they send to DC.
Based on what I’m reading here and at BB, this bill is dead in the water the way it is currently written. Too many base conservatives are against it. Which is good, because I’m getting screwed big time. My taxes would go up nearly 10k. Hell no!
Illinois (and the other deep blue states) are losing taxpayers, too!
=>"California, Illinois, and New York Keep Losing People to Other States"
>
Still no detail on the width of the brackets. WTF?
Agreed. I don’t see how people can say they are going to pay more, when they have no idea what bracket they will be in.
>
It’s GOVT! Of course, we’ll all pay more.
When the mantra of ‘having to pay for tax-cuts’ entered the fray, from the (R)NC, the jig was up.
Wonder how the town halls will be this election years vs. the ‘small govt’ (R) they love to preen and strut about smacks vs reality
I look at this, and what I view as unfair rate disparities brought about the lowering the rate for pass throughs vs wage earners, and the loss, or non loss of step up basis due to the estate tax exemption I alluded to earlier, I see a poorly thought out bill. I see little economic stimulus here, and virtually no tax simplification.
Meant to note, of the Senators I noted, they can’t lose a single one. And I think all could object based on their constituents interests. And he has to pick up one of the three you mentioned.
http://nypost.com/2017/11/02/heres-how-tax-brackets-could-change-under-gops-new-plan
https://finance.yahoo.com/news/tax-bracket-may-change-under-141900909.html
As I read this article: http://money.cnn.com/2017/11/02/news/economy/house-tax-reform-bill-individuals/index.html
This will never pass.
“Still no detail on the width of the brackets. WTF?”
You mean these?
Individuals:
39.6% - +$500K
35.0% - $200K to $500K
25.0% - $45K to $200K
12.0% - Up to $45K
Married Filing Jointly:
39.6% - +$1M
35.0% - $260K to $1M
25.0% - $90K to $260K
12.0% - Up to $90K
ALL such comparisons I’ve seen ignore the tax benefits the states receive.
For one instance the SALT deductions for businesses and individuals- which go to the states that supposedly “pay more”.
Hmmm... maybe the solution to the SALT tax problem with this bill is to remove the deduction from businesses?
Would be good policy encouraging businesses to move/expand into low tax states.
Best of all, of course, is that would not show up on people’s individual taxes.
Absolutely. And the demographics are worse, IL is losing millenials and older (kids off), gaining lower income individuals.
Given our demographics and avg. family income, does that seem excessive to you? I think it’s amazing. And thanks for answering my question re your location.
Frequently business' relocating to high tax states cut deals, they don't pay those taxes. And then again when the deals run out.
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