Posted on 09/28/2017 12:54:19 PM PDT by alancarp
Homeowners in tax-happy blue states could find a bitter pill inside the new Republican tax plan, which would kill their ability to write off the property taxes that can cost even middle class families more than $10,000 per year.
The plan rolled out Tuesday would keep in place deductions for mortgage interest and charitable donations. But, in a move to help offset other major cuts in the plan, many other itemized deductions would be scrapped. ... New York Democratic Gov. Andrew Cuomo slammed the proposal, saying the loss of the deduction could cost New Yorkers more than $17 billion.
“It would penalize this state,” said New York Gov. Andrew Cuomo, who said the “death blow” could cost residents of his state a collective $17 billion. “It is the height of hypocrisy. You have an administration saying, 'I want to cut taxes,' and now literally they want to tax you on the taxes that you pay.”
(Excerpt) Read more at foxnews.com ...
(1) This is removing a deduction; not taxing a tax.
(2) Funny you should use the term 'death blow'... what about estate taxes in NY? If anything is taxing money that's already been taxed, that's it.
(3) Your state has been grossly taking full advantage of said deduction - effectively robbing the federal government of revenue.
(4) Aren't you one of the ones on record continuously advocating for higher taxes?
(5) Elections have consequences.
I’m in Blue Jersey, and if I can’t deduct my property tax, I’m not going to be happy!!
Cut your state government, cut your state taxes. You’re basically a one party (socialist) state.
In those state the MI deduction gives states cover to jack their taxes through the roof, especially county real estate taxes.
Don’t know about you guys but we are in a high property tax state (Florida). Would like to see this remain as a deduction...
The writers of TPP purposely inserted this into the tax bill in order to poison President Trumps signature package.
Nobody impacted should be happy... I get that. Frankly, I expect that Congress will blink first, but the answer here is that taxes should be reduced - period. The Feds should not be entitled to unlimited revenue; neither should the states.
Tax everyone, (no exceptions guys, let’s all get some “skin in the game”) and eliminate ALL DEDUCTIONS!
Equality for ALL taxpayers in ALL 50 states.
No deductions for state or local taxes.
From sea to shining sea.
High tax states are already seeing mass exodus, both CA and NY. The states will lose their tax base and will not be able to afford their extravagant public defined pensions and significantly subsidized healthcare for guvmint workers.
No wonder Marxist’s like Cuomo are feeling quesy
I think this is actually a hilariously good idea.
It should be noted that the actual authors of this tax plan are undisclosed, other than “Republican leaders”.
And, truth be told, I doubt this provision will pass. More likely it is a bargaining chip to force the Democrats to get on board, at least enough to overcome the Republican holdouts.
At the same time, doing so will enrage this radical Democrat rank and file.
So it’s a win-win.
This is red states subsidizing blue states. P.S. I am in DC which is the worst of all possible worlds. It should go - raise the standard deduction for everyone and lower the tax rate and folks should be fine without a property tax deduction.
This is absurd. My property taxes, which are very high in Texas ($14k a year for us) are my ONLY deduction I’m allowed.
Lower rates will more than offset that. So shaddup or move!
Doesn’t the mortgage deduction raise the price of housing? No need for a million dollar house if one can afford one for $200k.
But in many cases, especially middle class, this will raise them.
I’m sure I’m a minority here opposing this. My problem is that you can deduct the local/state TAX from INCOME. I want to deduct the local/state TAX from federal TAX.
Feds should set my tax rate at 20% of my income (or 30 or 40 or 25). If it’s 20% and my state taxes me at 5%, my state gets 5% and feds get 15% of my income. If my state wants 15%, they get 15% and feds get 5%. There is NO quicker way to get states to pay attention to the 10th amendment. Feds will be getting <1% of my income after the next state congress meets. And, if feds up my rate to 40%, they will still get 1% (or less) after states increase to 39%. States do not want taxes to come back to them with strings if they have the option of getting it without the middleman taking a cut and strings.
Even better if I have NO federal taxes. Feds collect taxes from states. My state collects their federal obligations plus their cut from me. I can still move if my state wants too much and another state offers me a better deal.
Giving the Democrats what in return?
The current tax laws are what have helped distort housing prices in places like California. Being able to deduct taxes and mortgage interest from ones tax bill, along with historically low interest rates on home loans has allowed a new housing bubble to build. of course, money-hungry cities love it for property values to be inflated so they can get more property taxes.
The whole system is feeding on itself to create expensive housing. Take away the deductions and housing prices will fall... making them more affordable.
Somewhere, awhile back, the idea of owning a house was changed from a place to live to an “investment”.
And you know that how? The lowest tax bracket is being raised from 10% to 12%. When does 25% kick in?
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