Posted on 02/15/2024 2:30:01 PM PST by cotton1706
Agroup of conservative Republicans on Wednesday joined Democrats in a procedural vote to stop the advancement of a plan to expand state and local tax (SALT) deductions.
The procedural vote to consider SALT legislation failed 195-225, with 18 conservatives joining the Democrats, according to The Hill.
Moderate Republicans from New York, California, and New Jersey have sought to expand the $10,000 SALT deduction cap imposed in the 2017 Tax Cuts and Jobs Act. Supporters of the cap have argued it serves to incentivize states and local governments to reduce spending.
New York GOP Rep. Mike Lawler had sought to double the cap for married couples, Politico reported. His plan would have applied to taxpayers making less than $500,000 and apply to the 2023 tax year.
While SALT reform does enjoy support from across the aisle, many Democrats believed Lawler's bill would not properly address the issue.
Democratic New Jersey Rep. Bill Pascrell, for instance, called the measure "badly flawed" and "bare minimum."
"What we have before us is a fig leaf to paper over that Republicans opposed middle-class tax relief," he said.
(Excerpt) Read more at justthenews.com ...
If you think your local taxes are too high, talk to the legislature that created them. Don't try to move the debt to people that DO NOT have the ability to remove the legislators that created the high taxes!
We have enough friggin bills to pay. You pay yours!
I live in NY. I want lower taxes, not schemes to get others to subsidize high NY taxes.
If I was in charge of the federal income tax system I would get rid of all deductions except saving for retirement and replace them with a larger per dependent standard deduction.
Progressive republicans need their welfare back.
SALT is a subsidy to blue states. They are basically intercepting would be federal taxes.
SALT forces responsible red states to subsidize the blue.
Irresponsible blue states raise taxes sky high, then use that as an excuse to exempt that from federal tax. And then for extra fun, blue states slop at the Federal trough as big as ever.
Even federal tax for all. And if communist states raise taxes sky high, people in those states can vote them out.
My dependents have all been raised, so I would just get a big screw you under your approach. I have no children or grandchildren in the public schools, but that is the most significant part of my state and property taxes.
good ... why should the rest of us have to pay extra Federal taxes because Democrat voters choose higher State taxes?
The $10,00 limit is NOT fair...and it should be shot down. Taxes are up there in NYS.
Understood, but a $10,000 SALT limit is a ridiculous number. Keep in mind that SALT takes into consideration Sales Tax, State Income Tax, and Property Tax. If you pay more than $10K in any combination of these taxes, then you are loosing deductions, which means that for every $ above $10K in SALT taxes, you are paying your marginal tax rate on those dollars. There are VERY few working people in America that would not benefit from increasing the limit. The only ones that are not impacted are those that make less than $100k/year in their HOUSEHOLD, and rent.
“My dependents have all been raised, so I would just get a big screw you under your approach. “
Mine are almost raised so I would not benefit for long but I would have benefited during the time I most needed it if it had been in place.
“intercepting would be federal taxes’
Very nice phrase.
Just because a state taxes one into the poor house doesn’t mean one should get to shift their federal tax liability. Anything other would be theft.
Bloated SALT is theft of The Commons.
SALT deductions really only benefit the top 10% of filers who itemize. The increased standard deduction covers the rest. I live in California and would benefit from the increased SALT deduction. However, I’m in favor of keeping the deduction where it is. This state is a mess and it’s not fair for other states to bail the fools in Sacramento out with federal tax cuts.
So, you dont pay property tax? ... you must be a renter.
Or are you saying you dont live in a state with a state income tax ... there are only 9 of them. (AK, FL, NV, NH, SD, TN, TX, WA, WY)?
Or are you saying you live in a state with no sales tax. There are only 5 of them. (DE, AK, MT, NH, OR)
So, people that live in Alaska or New Hampshire that rent don’t care about SALT taxes ... but the rest of the country pays more Fed Income Tax than they should because the limit is TOO LOW.
Relief is a nice word for it.
And I say that as a homeowner in NYS.
Who opposes the so-called relief.
Good.
Glad you are not in charge of tax policy then. America would cease to exist within 90 days. If there are no tax deductions for investing, people will not invest. I am not talking about Joe Blow putting money into a 401k, I am talking about serious investing like creating businesses. Your plan completely ignores taxation on businesses. If business investment could not be offset with tax relief, investment would stop.
Factually speaking, your post is highly inaccurate.
Red states generally get more federal dollars than they pay in. Lower state taxes mean red states get more federal money. Blue states pay the most in federal taxes with or without the SALT deduction. Blue states use less federal dollars due to higher state taxes.
Renters cannot write off the indirect property tax, but homeowners can. This is a conversation about SALT limits and how it impacts Income Tax.
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