In NYS that 's a household with a teacher and a cop. That's not what Trump promised. It's VERY disappointing.
LOTS of people in NY, CA, IL, CT, MD, and other high state and property tax states did 40 years of financial planning for retirement based on the deductibility of those taxes. Many of those people are going to get hit with THOUSANDS of dollars per year in tax increases, completely wiping out retirement plans. How do you make up $2,000 to $5,000 per year tax hikes on fixed income? If you live 20 years in retirement in a high-tax state, you are going to pay $40k to $100k more in taxes!
Expect lots of retirees who didn’t want to move are now going to be forced to move to a different state. If you are in a position to invest, expect property prices to decline in high tax states and rise in low-tax southwestern states.
For fairness, changes this big should be phased in. One set of rules if you are over 60, another set for each decade less than 60. Those starting out in their 20s or 30s have a lifetime of earning ahead of them and can plan for no deductibility of state and local taxes. You don’t have that luxury if you’ve recently retired or were planning to retire soon. But “fairness” is not something you expect out of the stinking government.
I’ve never seen a screw job this big from any Democrat. I never dreamed that Republicans would eff us over this badly.
“It’s true that a small percentage of households and taxpayers — disproportionately high-income itemizers living in high-tax blue states — will face higher bills under the GOP plan.”
So, that makes it a tax cut for some and a tax increase on some?
How about the two-income itemizers in North Carolina that are paying a lot of SALT? Are they getting a tax cut or a tax hike? Same with Utah and Texas.
In those state and several others more than 25% of taxpayers itemize.
They will not only lose their not insubstantial SALT deductions, they will also lose ALL dependent exemptions!
Anyone who thinks the increased standard deduction will cover that gap cannot count.
Millions will see a net tax increase and they will reside in every state in the union.
Disproportionately in blue states, but in every state in the union.
And these people are the backbone of the Republican party. The suburban volunteers and contributors. And solid Republican votes.
Trump has little actual control - the RINOs are the problem and there are enough who won't vote for it if it doesn't do enough or if it does too much...