Posted on 11/17/2017 6:56:41 AM PST by Mariner
WASHINGTON (Reuters) - From Pataskala, Ohio, to Conroe, Texas, local government leaders worry that if Republican tax-overhaul plans moving through the U.S. Congress become law, it will be harder for them to pave streets, put out fires, fight crime and pay teachers.
A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.
Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.
The proposed repeal of the state and local tax (SALT) deduction is part of an "assault on local governments" by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.
"My hope is that we look at being thoughtful about what we're doing and not ram something through just to get something done before the year is out," Kautz said of the plan being rushed through Congress by her own party.
In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government's role at that level is limited.
Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.
-----snip-----
A bill being debated in the Senate, with Republican President Donald Trump's support, would kill the SALT deduction entirely for individuals and families, although businesses would keep it. The fate of that bill is uncertain.
(Excerpt) Read more at ca.news.yahoo.com ...
Well, I’ve analyzed my tax and the tax cut has little effect on my taxes, perhaps a few hundred less. We will pay the approximate same. We live in Florida, we have no state income tax and our real estate tax is around $3K. Sales taxes here are 7%. My wife and I live within our means, we don’t have an estate on the ocean, we did not send our kids to 50K a year colleges, we drive 8 year old cars.
Anyway, in my view, the best tax would be one wherein everyone pays the same rate from zero dollars up with no refunds greater than what one paid in. I am tired of paying welfare through the income tax system.
As far as corporations go, I would go along with lowering the tax rate along with some provision like there used to be years ago i.e. they MUST return a high % of their net income to their stockholders. Net income would be after they invest in research too and depreciation schedules would be relaxed a bit.
Seriously.. I had a cop call me about something he needed because his 100 thousand dollar a year job was at stake. Read that again 100, 000 dollars.
Yes, don’t people remember how taxpayers got hosed after the Reagan tax rate reductions? The Republicans accepted the loss of several deductions (not that I think Republican politicians really care) in exchange for lower rates. What happened? Money flooded into the treasury as the economy boomed, but Congress spent all that and more. The deficits rose, and, of course, Congress then raised the tax rates...BUT THE DEDUCTIONS WERE GONE FOREVER!!! Folks, we always lose. Taxes should be lowered across the board and no deductions taken away. Let DC live on less. Unless we can truly reduce government spending, nothing will change.
“Tax revolt is good.
Let the liberal bastards die in their own fetid excrement.”
Especially in these petty assed cities and suburbs. Small time petty tyrants who willy nilly impose there whims. I’m thinking specificanlly of smoking bans, gun control, spray paint, public telephones, “clear sky” lighting laws, and on and on with whatever annoys them. Self righteous pricks. Meanwhile we’re paying confiscatory real estate taxes to keep their sorry asses employed. Like really obnoxious HOA boards. F them.
But is it true??? I have no problems with corporate tax cuts IF the middle class isn't stuck with covering the loss...
It's no secret that corporate profits are astronomical so what are we looking at here, just pure greed by those corporations??? Look at Comcast for example...They keep raising rates while having to build new vaults to store their cash in...
It's said that 1% of the people pay most all of the taxes...Since they rigged the system where they also get all the money, then why not???
I keep trying to defend this corporate tax cut to my middle class friends but I'm falling short...Anyone have any information on how these corporate tax cuts are going to benefit the American middle class???
That's a pretty ridiculous charge. There's no "fairness" in double taxation, that makes your argument one of "social justice". The fact that people are too lazy, unwilling, or can't move from high tax states is a problem, and that's what needs to happen here, plain and simple.
I think this is a ridiculous concern.
Hi.
I look at it a little differently. There are large numbers of liberal democrats leaving tax heavy blue states. NY, MA, NJ and IL liberal democrats are coming to FL in record numbers. Why? You know one answer, taxes. Then they try to turn FL blue.
Why don’t those liberal Democrats fix their own state? And stay there.
5.56mm
Everybody hates the cable company so let's keep our corporate rate the highest in the world. That's your argument?
“Oh good. This has all just been a great big misunderstanding. Can you do me a favor? Can you call Paul Ryan’s office and tell him he doesn’t need to increase taxes on millions in the middle class so that the corporations can get a tax rate cut from 35% to 20%? Thanks very much.”
Relax...you know the corps are going to pass the savings along to the consumer dont you? Those taxes are passed to the consumer so the savings will be too? Don’t bet on it.
Fake argument...Every facet of business has become unionized, scoffing at former anti-trust laws and eliminating competition resulting in controlling high prices in every sector...
Non union made autos cost the same as union made autos...An auto dealer in one town sells a car for the same price as another dealer in another town...No competiton...Unionized...
When there's a gas price hike in a town or city, within 15 minutes every station in that town has increased their price the exact same amount...Unionized...No competition...
Irrelevant.
Personal income tax is far more intrusive and destructive than corporate income tax. And the Republic survived without it and the Fed from 1776 to 1913.
Wages are not profits. Profits made from wages can and maybe should be taxed. Investment gains are profits on the original investment, for example.
Tax profits, not wages. Simple.
Just occurred to me...
Extreme places like San Francisco will likely respond with a progressive property tax!
Talk about a hard education for their taxpayers!
“They’re whining here in Jersey about losing the deductions for state and local taxes, but I don’t hear that much whining about the taxes that CAUSE the whining!”
In other words they are okay with getting ripped a new one by the local communist governments as long as they can deduct from the federal.
In CA, NJ and NY $100k is peanuts.
“Until you or your parent is denied a Social Security check, medical treatment, or the fire department in your town shuts down.
You folks defending this abortion of a tax bill have no idea how badly it will screw millions in the middle class. Once these deductions are gone, they are gone forever. “
Probably gone unless it turns out so badly that there is general revolt. A few well publicized hangings woukd help too. We used to be able to deduct credit card interest too. That hasnt come back.
>Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.
Sounds like winning to me.
It must be noted that those in question are not being required to return their fair share not paid in all the previous years.
Deducting state taxes is de facto not paying their fair share
bert, I
I expected more from you.
“Deducting state taxes is de facto not paying their fair share”
Would the same apply to ALL deductions? or just SALT deductions?
Any person taking a deduction is not paying their fair share, in all circumstances or just your favored ones?
“There’s no “fairness” in double taxation, that makes your argument one of “social justice”. “
Double taxation is taxing those monies used to pay other taxes.
Like SALT.
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