Posted on 10/24/2017 8:43:48 AM PDT by george76
Tax Reform: What do you call a tax break that delivers 88% of the benefits to upper-income families and subsidizes rich states at the expense of poor ones? If you're a Democrat, you call it a sacred cow.
One provision of the Republican's tax-cutting plan that has drawn intense opposition from Democrats is the elimination of state and local tax deductions for those who itemize.
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Fewer than 22% of tax filers even claim the state and local tax deduction, and the vast majority of these are higher-income families. While 78% of those with incomes above $200,000 claim the deduction, just 7% of those making between $30,000 and $40,000 do. For most taxpayers, the standard deduction is more valuable.
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Those earning more than $200,000, the SALT deduction cuts their federal tax bill by an average $6,295. For those with incomes of between $100,000 and $200,000, it's just $857. Those earning from $30,000 to $40,000 get an average of $93 off their federal tax bill.
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The benefits of the SALT deduction are heavily skewed toward wealthy high-tax states, for the simple reason that the more someone pays in state and local taxes, the more they can deduct from federal income taxes.
In fact, just seven states — California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, and New York — account for more than half the deduction's cost, according to the Heritage Foundation. California alone is responsible for almost 20%.
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In effect, then, the SALT tax break has turned into a massive federal subsidy of profligate liberal states, paid for by fiscally conservative states.
That's why Democrats are so determined to keep it. Not because they care about working class families, but because they don't want to see their rich friends who live in deep-blue states get hurt.
(Excerpt) Read more at investors.com ...
I am surprised that you didn’t answer my question, seriously.
I am serious. I'm not alone in this. Thousands of people are facing loss of deductions and corresponding increases in taxable income. How is raising our taxes to the benefit of the country?
I know you’re serious, I also know you ducked my question twice now.
That’s okay, ducking twice is an answer in and of itself.
Disappointing.
I duck your question and you duck mine. We’re even I guess.
No, only in your mind are we even.
I asked my question first.
But I do understand why you ducked it, because you can’t answer it honestly.
Nor can you, so we'll have to just disagree and leave it at that.
I can answer honestly, I’ve just chosen not to.
My answer would be based on what is best for the American people, which is diametrically opposed to your answer that you’ve already given
One provision of the Republican's tax-cutting plan that has drawn intense opposition from Democrats is the elimination of state and local tax deductions for those who itemize... Fewer than 22% of tax filers even claim the state and local tax deduction... 78% of those with incomes above $200,000 claim the deduction, just 7% of those making between $30,000 and $40,000 do... The benefits of the SALT deduction are heavily skewed toward wealthy high-tax states, for the simple reason that the more someone pays in state and local taxes, the more they can deduct from federal income taxes... California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, and New York -- account for more than half the deduction's cost, according to the Heritage Foundation. California alone is responsible for almost 20%.
Harvey Weinstein and his Hollywood pals need the tax break... democrats know who butters their bread...
Having been assigned to New Jersey a couple times with the US Army, I have a feel for the cost of living in that area. At the time I was there, a hundred fifty thousand to $200,000 house in New Jersey was costing half that in Ohio suburbs. It wasn’t really a significant house. At the same time, salaries structures were much higher.
IOW, due to higher costs and salaries, the middle middle class appeared to be more affluent than their midwest peers.
They weren’t living beyond their means. They were just dealing with the cards they were dealt.
This salt tax thing really needs to take cost of living in different parts of the country into account.
Harvey Weinstein and his Hollywood pals need the tax breaks... democrats know who butters their bread. Democrats: white liberal ‘elites’ - propped up by black and brown pets...
My taxable income certainly is being raised. Why should I not believe my taxes aren't going up as well? Do you know something about the proposed brackets that nobody else does?
That's a dumb analogy. If my income goes up and I pay more in taxes, I still have more at the end of the day. If my income remains the same but my taxes go up I don't. Not hard at all to understand.
Once again, you are not making any sense! Either your income went up or it didn’t. The fact is, there is absolutely no plan whatsoever to raise taxes! Not hard at all to understand.
Of course not.
I realized this earlier. Nice to see it confirmed.
DoodleDawg is an anti-Trumper, pro-Hillary liberal. He has been against Trump since Trump filed for the campaign in 2015.
Democrats and blue state Republicans: soaking the rich . . . except when they don’t.
Maryland “Freak State” PING!
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