Is Cuomo stupid or a liar? The SALT deduction is restricted to a maximum of $10,000, not eliminated. I don't think that he is stupid.
Ah, Tax cuts for the rich are anathema to Dems when campaigning so why don't they think that capping the SALT deduction at $10,000 is only making the rich pay their "fair share?"
>>Is Cuomo stupid or a liar? The SALT deduction is restricted to a maximum of $10,000, not eliminated. I don’t think that he is stupid.<<
Well, liberals aren’t noted for their charitable donations, so he’s probably right in that most New Yorkers will end up claiming the standard deduction now. It takes over $14,000 in mortgage interest, charitable contributions, and other deductions to use the $10,000 in SALT allowed. Most New Yorkers who own their homes are undoubtedly itemizing.
What’s ironic is that by using the $24,000 deduction, and losing a ton of SALT deductions, their federal taxable income can go up a lot, but because of the lower tax rates, their federal taxes go down.
But if their federal taxable income goes up substantially, will that mean that their New York State taxes go up accordingly? If state taxes are based on federal taxable income, they will.
As one example, a couple making $250,000 and claiming all their state taxes plus $10,000 in property taxes and $8,000 in mortgage interest will see a few hundred dollar decrease in their federal taxes, but their federal taxable income will rise by over $20,000. They might end up paying STATE tax on that increase, adding even more pressure on the state government to get taxes under control.