Posted on 09/29/2017 9:59:24 AM PDT by rktman
As President Trump prepares to sell his tax plan to the nation's manufacturing lobby on Friday, his best-laid tax plans have already drawn objections from some fellow Republicans who are fuming over the decision to end deductions for state and local income taxes.
The situation will pit the White House against members of Congress from states that pile high income taxes on top of what the federal government takes from paychecks.
High-income Californians, for instance, pay as much as 13.3 per cent of their income to the state in addition to their federal taxes. New Yorkers can pay up to 8.82 per cent.
Just seven U.S. states have no personal income taxes, including Texas, Florida and Nevada
(Excerpt) Read more at dailymail.co.uk ...
Always room for negotiations.
No more Tax Breaks for Rich Libs?
Hopefully that was a throwaway bargaining point.
I can’t imagine why on earth they would remove the state tax deduction. Who thought that was a good idea?
Tax money that you’ve paid in taxes???
Though we don’t have a State Income Tax, in Texas, we do have sales tax and that has traditionally been a deduction. If we still have charitable deductions, I tend to agree this deduction should be retained.
Does it average out as a substantially net lower tax? That’s all that matters. Who cares which tax bucket it comes from.
rearranging the deck chairs on the titanic - the same amount of money or more is still coming in from taxes. true tax reform includes huge cuts in gov spending
My RAT State of California has no dog in this hunt. Trump doesn’t have to curry favor with us, and as far as I am concerned, his proposal needs to go forward. Screw states like ours with our high tax rates. CA tax rates for most people are low enough that it won’t matter, and if the “rich liberal a$$holes” here get fleeced, ask me if I care.
And as a semi-retired individual with a fair amount of real estate holdings, the Estate Tax is a bigger deal than the income tax take.
Do you have property taxes on real estate, boats, or cars in Texas? That would no longer be deductible under this plan either. Plus personal exemptions would be eliminated as well.
Who’s gonna pay for the negotiation? LOL!
Kabuki.
All of it.
We won't know that until they come out with the details on the three tax brackets.
Tax money that you’ve paid in taxes???"
Exactly, it's an absurd idea.
And, not everyone in a blue state is a millionaire, manson living liberal.
All this stupidity of giving most of our money to the feds and then having states and cities beg for block grants to get our money back is the major reason why power is being more and more centralized.
It’s a great idea. Get your reps to repeal those state income taxes or move to another state.
Why should CA suck in billions in federal money when all their citizens get a pass on their federal taxes?
What it does is put pressure on states with high rates to lower them.
The initial pain I would endure from this would be worthwhile because eventually my state would have to lower taxes to keep me and fellow taxpayers from moving to.....say....Texas.
I think it’s a great idea to end what is literally a Federal subsidy of liberal welfare states.
Heard a figure the other day the feds will collect $60T in tax revenue in the next 10 years. If true, just wow.
I do agree with who_would_fardels_bear though.
Sending all our money to DC where they burn through 25% pushing paper around only to return it to the states in block grants is terrible on every level.
Just another reason we need term limits.
I have always wondered about giving federal tax credit for taxes paid locally. This enables local taxes to climb higher, resulting in local governments wasting more money. This is especially true of places like California who hire people with titles like Director of Good Vibrations or Manager of Diversity Coordination, at $160k plus benefits.
The state tax deduction also means that, to get the same amount of revenue, the federal government must apportion the amount of credited revenue among those people whose localities are not living large.
However, what I think Trump is doing is establishing a negotiating baseline. He’ll back off to his real position later, after his base has conceded something else that he wants. (While I wouldn’t have believed this possible for Bush or Obama, I think it’s very probable for Trump.)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.