Posted on 11/17/2017 6:56:41 AM PST by Mariner
WASHINGTON (Reuters) - From Pataskala, Ohio, to Conroe, Texas, local government leaders worry that if Republican tax-overhaul plans moving through the U.S. Congress become law, it will be harder for them to pave streets, put out fires, fight crime and pay teachers.
A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.
Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.
The proposed repeal of the state and local tax (SALT) deduction is part of an "assault on local governments" by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.
"My hope is that we look at being thoughtful about what we're doing and not ram something through just to get something done before the year is out," Kautz said of the plan being rushed through Congress by her own party.
In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government's role at that level is limited.
Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.
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A bill being debated in the Senate, with Republican President Donald Trump's support, would kill the SALT deduction entirely for individuals and families, although businesses would keep it. The fate of that bill is uncertain.
(Excerpt) Read more at ca.news.yahoo.com ...
Gee, being forced to reduce taxes will cut down on the millions of bureaucrats hired by every level of government, who in turn, have to come up with reams of regulations to justify their pay checks.
Explain to us tax drones how this is a bad thing.
Your talking point is the same as Schumer and Pelosi. Coincidence?
It’s kind of wierd to hear freepers arguing to subsidize California public employees unions, but there it is.
Furthermore, what garbage are they spending all this cash on anyway? Infastructure is in ruins and the military is crippled by a lack of funding. Important stuff isn't getting paid for anyway, so cut spending and reduce taxes for BBC oth business and the rest of us.
“Gee, being forced to reduce taxes will cut down on the millions of bureaucrats hired by every level of government, who in turn, have to come up with reams of regulations to justify their pay checks.”
Best case they are just shifting the existing tax burden. Anyone who pays less will be offset by somebody who pays more.
In 100% of cases.
There are DOZENS who have already weighed in on FR saying their taxes are going to go up.
I’m joining that chorus.
These are substantiated facts that are also being echoed by the commies of all people.
But Republicans, blinded by the color of jerseys, cannot bring themselves to even assess it, taking the word of their betters as spoken truth.
Same town, FEMA came up with 75% of the funds to repair the local harbor docks after hurricane Mathew. No one cared to notice that over the 20 years the docks were there, the city had done none of the mandatory maintenance to keep the tie rods from rusting. The breakage of the tie rods was the principal reason the docks failed.
Down the coast a tad, FEMA is paying to have homes elevated if they were damaged during the storm surge. The cost to do so easily exceeds the building cost of these properties (not the FMV which is far higher). My point is someone builds a home at 5 feet elevation on the coast and expects to not have any problem with storms. FEMA comes in and makes them better than whole by rebuilding the place with a needed elevation which of course is done at a huge cost to the taxpayers who mostly were smart enough to not build or buy a home in that area. But it is just someone else's money or worse, more debt.
Reuters & Yahoo spewing FUD as always.
“It’s kind of wierd to hear freepers arguing to subsidize California public employees unions, but there it is.”
I challenge you to make a plausible argument as to how any federal tax policy “subsidizes” CA or their public employee unions.
You seem to believe that if the Feds take less from a taxpayer in CA, they must take more from a taxpayer in Texas, and without regard to how the revenues are spent.
And without regard to the fact the taxpayer in CA is paying more per capita and collectively than the taxpayer in Texas.
Zero-sum taxation has long been the mantra of the left.
And ultimately your motive is Social Justice. You cannot stand the fact that others might have more than you and you want to cut them down to size. And you want to use taxation at the barrel of a gun to do it. Getting government to do it on your behalf.
My cousin lived on a river. It flooded them out twice. FEMA made them whole twice.
Later on, they got a buyout because they were in a flood zone.
My "conservative" cousin was more than happy to get the government handout.
shaking my damn head.
From the state income tax, yes. But that's minor compared to federal.
You think raising taxes on individuals will make Trump and the Congressional GOP look good?
Bizarre.
Agreed, the bill as proposed is a Democrat pleaser.Anything that pleases Democrats is bad for Americans.
“Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.”
Why of course. That’s the purpose.
5.56mm
My questions was whether you take the SALT deductions on your Federal taxes...?
My Trumpian Tea Partying CPA of over 30 yrs has looked at this and is worried. They'd love to talk to PDJT or someone who will listen to what they see and how it will effect middle America. They are not the type to give a speech, etc, they are more personal.
Our "leadership" is about to take themselves and PDJT over a cliff ( by design I might add ) and I am powerless to stop it...
“Why of course. That’s the purpose.”
So that Feds take more in an effort to cause the locals to take less? That’s been their intent all along?
Geez. Wish I had known that sooner.
We have been, yes. Under the changes we may not be able to do so.
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