(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.
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!
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.
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”.
All taxes are a tax on tax. Money is taxed all the time in various ways...each time taking a bite. Income tax then sales tax fir example. How about lowering taxes in blue states instead?
Just get rid of that evil that’s called property tax and you’ve got it solved.
Flat tax of 15% on all income above $25,000. No deductions.
Seen anything on Alternative Minimum Tax (AMT)? My wife and I get killed on this every year.
The effect of this will be a steep decline in real estate prices, possibly a crash.