Posted on 12/10/2017 11:02:28 AM PST by Mariner
Federal tax reform proposals often include expanding, reducing, or eliminating various tax expendituresspecial exclusions, deductions, credits, and other provisions that allow people or businesses to reduce their income taxes.
This interactive map highlights the state distribution of several federal tax deductions and credits.
The maps reveal wide variation across the states, indicating that changing federal tax expenditures likely would change the geographic distribution of federal tax benefits.
(Excerpt) Read more at pewtrusts.org ...
"Expenditures"? bleh.
Still a great interactive map.
A lot of people in my state of Mexifornia are going to get hosed big time. I Don’t Care, this will only shine the light on the true amount of taxation/theft in this godforsaken tarnished state.
It will have a minimal effect on me,I figure it will cost me about $1000 in extra Federal Taxes, I have NO Mortgages and am Debt Free for a long time now, so I really have no itemized deductions other than property taxes.
The rest of California’s Big Spender Liberals mired in mortgage debt up to their eyeballs are not going to be very happy though
It becomes a heck of a motivator for people in liberal states to demand the states cut back spending and welfare.
Not just California.
For instance, people who itemize and take SALT deductions in Texas, take an AVERAGE of over $26,000.
That means their AGI will go up at least $2000 and in many cases much more.
In fact, itemizers in every state where the average deduction under itemization exceeds $24k are very likely to see a tax increase.
That’s a lot of states. And Congressional districts.
See my #4.
It’s not just high tax blue states. Look at the chart again.
If the mortgage deduction is eliminated instead of the SALT deductions, you would not be able to punish the blue states disproportionately.
A lot of people in my state of Mexifornia are going to get hosed big time. I Dont Care....
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Same in my DEEP blue state of Maryland. And my family is among the hosees. But we also dont care and will very WILLINGLY pay the price for starting the process of unshackling the parasitic Left from working Americas pockets. MAGA!
In 2015, tax filers claimed about $1.3 trillion in itemized deductions, resulting in roughly $194 billion in forgone federal revenue (see definition of summing tax expenditures).
In 2015, the child tax credit reduced tax filers overall tax liabilities by about $27 billion.
So, me keeping my own money is considered "forgone federal revenue", but the child tax credits and earned income tax credits are reductions in liability. Uh-huh. I bet Pew would list outright welfare programs as "investment".
Pew has a decidedly LEFTIST, SJW view of the world.
Tax expenditures and all.
The ONLY tax expenditures are Credits.
Which should be eliminated in their entirety.
Yup. I think this is part of the plan. Trump is spotlighting lib states like NY and CA. Maybe the unwashed will wake up... doubtful.
Yep. And retirees in states with high property taxes, which includes Texas and Florida, are likely going to see higher federal taxes because the medical expenses/premiums deduction is going to be lost under the higher standard deduction. In our case (one on social security, one with a modest pension), it will result in a $600-800 higher federal tax bill.
Considering that the corporate tax rate will go down to roughly 20%, for California that should be a BIG positive. With mega companies such as Apple headquartered there, Apple will be less inclined to shelter their profits from taxation. Maybe CA will LOWER their tax burden on the individual citizen with all of that corporate monies coming in........or not.
“or not”
The committed Communists that pass for politicians in my state will certainly not reduce taxes, no matter what.
Still, being hit with higher taxes by the Feds, not the State, is quite the blindside. Especially coming from Republicans.
“And retirees in states with high property taxes, which includes Texas and Florida, are likely going to see higher federal taxes because the medical expenses/premiums deduction is going to be lost under the higher standard deduction.”
That’s just not possible.
Just ask the Social Justice Warriors on FR.
“EVERYONE should pay a flat tax all income, period!”
That would move the US Congress from being brokers to being legislators.
It will never happen.
There’s no money or power in it.
Again, with the corporate tax rate going down to around 20%, states with multinational companies headquartered within their jurisdiction should see a definite increase in revenues as those companies now will be less inclined to shelter their worldwide profits from US taxation. If those states refuse to lessen the burden on individual taxpayers, then it is up to those taxpayers to remedy the situation. As for taxation policy at the Federal level, there appears to be little REAL LIFE difference between the red and blue teams. Ive always considered US tax policies to be more about citizen BEHAVIOR control than anything else. The central government will be hard pressed to give up that kind of power.
>>>And retirees in states with high property taxes, which includes Texas and Florida, are likely going to see higher federal taxes because the medical expenses/premiums deduction is going to be lost under the higher standard deduction.<<<
Most Retirees are on Medicare or only a few years away.
In CA where I live most Medicare Supplement Plans have ZERO Plan Premiums, ZERO Co Pays and low cost Prescription Co Pays.
As I stated elsewhere, Susan Collins put an Amendment into the Senate Bill that gives everyone a $10,000 Deduction for SALT. How many Retirees are paying $10,000 in Property Taxes, the Evil Rich ones?
Here we are again arguing over a Tax Bill still being negotiated. When it is finalized we’ll see what’s in it.
It wont even affect anyone until April 15th of 2019 no matter what the final product ends up looking like.
Here’s an interesting related article;
http://thefederalist.com/2017/11/17/red-states-tax-takers-blue-states-tax-makers/
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