Posted on 10/30/2017 9:54:57 AM PDT by NaturalBornConservative
Yup. And for them to lie about the percentage who itemize (they tried to fudge and minimize it) is a sure sign that the bill is out to screw people. When you have to lie in order to peddle something, then you’re a liar. That alone should alert us that this is a bad deal.
States like California,New York, Illinois etc use property taxes along with other types of taxing revenues to subsidize their wasteful social programs such as sanctuary cities and states.
These states wind up being indirectly subsidized with mortgage and property tax (deductions) write offs.
Rather than eliminating these write offs how about working up a bill formula where these deductions are graduated and apply to states which are using a high percentage of such taxes to fund those programs. But requires such states to develop other sources of revenue locally rather than dumping their bills on the nation.
I don’t know if I agree with all the reasoning, because NY and CA are high income, high property value and high population states, which all contribute to their higher tax rates, but yes, I agree that it would be simple to limit property tax and state and local tax deductions to the national average. i.e. Enter the amount of your state and local taxes, but not greater than $x,xxx. Enter the amount of real estate taxes paid, but not greater than $x,xxx.
I’m aware of high population property valuation etc. But as I think about mortgage write offs. How about allowing deductions solely apply to interest rates and a given percentage of the principal ? For property tax set a fixed percentage deduction say 50% ?
But, but, the Clintons itemize used underwear...
I have no cue why is in the tax bill but I have said from the beginning that if you currently pay taxes, your tax will go up.
It’s a federal law so it has to apply to all states. Limiting to 50% would favor the same winners; limiting it to the national average levels the field. The mortgage interest deduction may still be in play, which only includes the amount of interest paid. Principal payments have never been deductible.
Yeah, the first $9,275 of taxable income times the additional 2% tax equals $185, turning the initial $165 tax cut into a $20 tax hike. Those who pay taxes at the middle or the bottom will get screwed if they don’t fix the plan. Those at the top may still realize savings, but the bottom rate should not be raised.
Under Trump’s original plan, while he was a candidate, the first $25,000 for singles, and $50,000 for couples was exempt from taxes. Then the brackets were set at 10%, 20% and 25%. Those in the 10% bracket would keep most of their deductions, while those in the 20-25% brackets would lose most of them. This resulted in big savings at the bottom and less deductions needed at the top. Too bad it got compromised.
https://blackandcenter.blog/2015/11/27/trumps-dynamic-tax-policy/
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