Agreed... as a CA freeper, I ran my 2016 taxes under the proposed plan and would have paid $150 more in Fed Income Tax, but nearly $3K more in CA income taxes. I am nearly certain that the greatest tax impact this plan will have on those the media is saying it will impact most (upper-middle and high earned income MFJ in high tax states) will be on state income tax (due to a significant reduction in federal itemized deductions carried into the state formula and resulting in significantly higher state taxable income). And... there is absolutely ZERO chance states like CA, NY, or OR reduce state income tax rates or modify the brackets... free money to them. Which leads me to ask the question: Is the proposed structure specifically designed to get the producers in high-tax states to relocate by significantly increasing state tax burden? Heck, thinking about investing in real estate in no/low-tax states just at the thought.
But if that were the intent they’d be removing the deductions for businesses instead of individuals.
Would be good policy beyond a doubt but businesses donate faithfully for their deductions.
Wow, imagine if California businesses couldn’t deduct those gasoline taxes!
JFK's TAX CUT was an across the board tax CUT; so was Reagan's!
OTOH, this POS proposition is CRAP; not to mention a tax INCREASE on a lot people...many of whole worked for, donated to, and support/ed Trump.
It won't stand as is and shouldn't! IT STINKS!