Posted on 11/12/2017 3:50:03 AM PST by SkyPilot
As we now know, both chambers of Congress have introduced their versions of legislation to overhaul our tax system, or, rather, the tax code. Some say it is reform, others more properly say it is merely a tax cut for the wealthiest and most powerful of American persons and corporations at the hands of those less fortunate, the middle class. But to give the rich their largesse, the middle class is being looked to as the sacrificial lamb by having certain deductions stripped away from them. Among the most critical of these deductions are the ones that make home ownership——the American “dream”—-more impossible to achieve. They are state and local taxes and property taxes (”SALT”) which promises to become a real lightening rod in passing any tax legislation in the weeks and months ahead (Senate Tax Plan Diverges From House Version, Highlighting Political Pressures). Lessening the mortgage interest deduction, as House Republicans are wanting to do, is also a problem (How The Republican Tax Plan Could Change Mortgage Interest and Property Tax Deductions).
In recent days, Congressman Peter King (R-NY) said he will not vote for the removal of any such deductions since it will mean his constituents in NY (Long Island) will find their federal income taxes going up. He espouses a view in microcosm held by millions across the nation in middle class suburbia that pay high state and local taxes. Besides New York, other states like Connecticut, Illinois and California readily come to mind. But, who cares, so says Republicans in states that do not have high SALT; what is important is to “feed” the pocketbooks of the “uber” class——Republican donors and fatcats. This is the Robin Hood scenario but in reverse-take from the poor and give to the rich.
(Excerpt) Read more at huffingtonpost.com ...
Amen!
Why?
Because unlike conservatives of today, the PROGRESSIVES of old considered taxing those monies used to pay taxes immoral. Not even Woodrow Wilson would dare to propose it.
And the SALT deductions were codified into the very first Income Tax legislation in 1913 for that reason.
You must be referring to the Home Mortgage Interest deduction. Is that what you propose to eliminate? That’s the one that tends to enrich the “middle men”.
I’m in CA and my property tax is darn reasonable thanks to Prop 13.
I pay 1% on an assessment made at purchase date.
“The real estate website Zillow looked at median property taxes across the U.S. last year and found that seven of the 10 counties with the highest property taxes — Bergen, Essex, Passaic, Union, Morris, Hudson and Hunterdon — are in New Jersey. The remaining three were in New York.”
Do you think there are that many rich people in NJ? This just means we have the richest public school teachers and cops. Using a rural county like Cumberland for comparison is absurd; the whole county has less people than Jersey City in my county (Hudson). Also, urban cesspools don’t re-evaluate, so their taxes are very low; that just puts the burden on the surrounding municipalities in that county. Look up my town (Kearny, NJ - sandwiched between Newark and Jersey City); we have plenty of homes with over $10K in taxes, and it is not rich by any means. It is past 50% Hispanic, and increasingly more every day. FWIW, I conceded areas with $20K taxes were wealthy.
If I’m inflating the truth, why are there “for sale” signs all over NJ? These people heading to your state will end up doing the same thing down there; you can probably already see the effect.
My income is a little over the number I cited and my Federal tax will go up over $5k per year.
I’ve done my own taxes every year since 1976 and I ran the numbers based on the House outline.
I haven’t see all the numbers for the Senate plan yet, but on the surface it looks far worse.
I am certain my taxes go up. As are so many folks I know.
Dozens have spoken up on Free Republic and announced their taxes are going up, and they are not all in CA, NJ and NY.
Every fair analysis of these plans show that millions of middle class taxpayers (broadly defined as $75k - $200k/yr) will see a net tax increase.
We’ll see how that works out for the Republican majority, but my guess is they’ll not see another one for at least 50 years.
“In recent days, Congressman Peter King (R-NY) said he will not vote for the removal of any such deductions since it will mean his constituents in NY (Long Island) will find their federal income taxes going up.”
Long Island NY is where they are finding the MS-13 body dumping sites; these places haven’t been “wealthy” for years. Increasingly, they aren’t even “middle class” anymore.
Does NC have “home rule” (where each municipality pays for its own school system)? Here in NJ we do, and those costs are 75% of our property taxes.
“national sales tax”
The only fair tax. The only one which changes Congress from brokers to legislators. The only one which take class and jealousy out of the law.
My home cost 1/3 of that ($500K), and my taxes are nearing $10K. That 2% figure could only be accurate if it accounts for the fact that must cities haven’t re-assessed in decades. Also, rural south Jersey (with a much smaller population) has lower values & taxes.
AFAIK, there are several factors involved in taxing properties here (beyond price or value); some formulas include property size, number of rooms, etc.
My thoughts on this parallel yours. I would add insurance companies in there as well.
Before Washington is done, I bet we all incorporate ourselves to preserve home ownership, health insurance and retirement planning as costs of doing business.
Thanks.
Interesting factoid: New Jersey has fewer public school students than North Carolina, but almost three times as many school districts.
“You are no different than these social justice warriors, most of whom themselves are very rich, who think it is my job to pay your taxes or pay for your nice house in the suburbs.”
So, if the government take less from me that means you are paying my taxes and for my house in the suburbs?
That’s the very same logic Obama employed when he said “you didn’t build that”. It’s also precisely the logic being employed by the GOPe with this tax plan...”it must be paid for”.
Like all the money is theirs, and if they take less from one pocket they must take more from another. And, it turns out, the pocket they are taking more from is the one that is paying all the income tax to begin with.
When you throw childish insults like that, it reflects on your character, not mine. Further, Mariner is correct. You are behaving like a Social Justice Warrior when you advocate the Feds taking us higher - either out of spite or envy.
I try to live by Romans 12:18. But even Christ was not a doormat. He stood up to the Pharisees when they tried to demean, destroy, and discourage.
Almost every town in NJ has its own school district; it is a very inefficient and costly way to operate. Chris Christie tried to change that by forcing small towns to merge. We are 500+ little kingdoms built on taxpayers’ backs.
No problem; happy to help.
No problem at all
“State and local deductions shift greater tax burden to states with no income tax.
I have never understood that line of thinking at all. I’ve lived in both kind of states, some with state taxes some without . I never thought it was unfair. It all one big Federal Treasury. All tax cuts are good. Al deductions are good.”
I agree that all deductions are good for sure. Here in Texas as you may know, there is no income tax. Thereby, our property taxes are often higher than property taxes in states that have both property taxes and income taxes. So, when income taxes are allowed to be deducted it reduces the net net unfavorably against the state’s that don’t have an income tax. Make sense?
I bought my first house in 1966. Due to an inheritance & purchasing a 2nd home, at one time, I owned 3 homes.
The accumulated property taxes of all 3 of these homes never exceeded $10,000.
I certainly would like to see how many tax filers have a property tax exceeding $10,000.
I would like to know how many tax filers have over $500,000 in mortgage interest on heir main property that they reside in.
NOT MANY, I would bet.
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