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.
-----snip-----
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 ...
Not the case in Montana, which voted bigly for Trump, but has otherwise been shading blue for years, because of the ag vote, senior vote, university vote, reservation vote, and rich leftists pouring in from the states they have already ruined.
Montana doesn't have a sales tax so income and property taxes are high; and our state spending is low, despite twelve years of spendthrift democrat governors (conservatives keep a lid on both houses of congress here).
Small business s-corps get creamed because they pay on their flow-through, not their actual paycheck. They will lose that deduction.
Our three electoral votes don't add up to much, but you will see a vicious campaign---Republicans raised taxes!--- in '18 to turn a very close senate seat and a house seat back to the dems.
People think this will turn red states blue and prompt blue state residents to pick up their families and move elsewhere?
Hoo boy - the denial is strong.
What’s going to happen is a reckoning of a different sort in 2018, and we’ll be looking at a democrat president in 2020 with a democrat controlled Congress.
Once people have to figure out 2018 withholding - they’ll begin to understand the betrayal
Well it wouldn’t shock me if that was the case. They must be pulling down 250k in comparison.
“Blue states will start flipping to red
faster than you can say H&R Block.”
Really? You think California is going to go red? Only 40% of the people here pay state income taxes. They could care less. Many of the rest are socialists. The remaining Republicans have no voice in this state and pay taxes. We are the ones who are going to be hurt by this so called tax cut.
You don't have sales and real estate taxes?
Yes but I've deducted state and local income taxes. Now we won't be able to deduct any of it - sales taxes, income taxes, property taxes, whatever. At least under the Senate version.
An average Sargent in a big city is making at least $175k before overtime.
Really don’t know what you are trying to say. No competition in gas prices? Why aren’t they $10 / gallon??
You mean the handful of people who have high mortgages and live in high tax states who will be hit?
Or the 100 million people who will benefit from a surging economy, higher wages, etc.
Some people just can't see past their noses.
“10’s of millions will get a tax hike. You must be repeating the talking points of the USCC and RNC.”
The number one point of paying a tax is higher income. I have seen the business income flex for over 60 years. A solid economy is not how high the market is or if the price of milk is $4 a gallon. It’s getting bang for your buck.
During the Bush administration, inflation was much smaller than during the Obama time after Bush got past the Clinton blow up. Bush gave money back. Obama didn’t and he doubled the debt during his time.
The increases you are seeing in middle class taxes are being phased in by 2026. It is hoped that with the increase of liquid funds to the taxpayer, by way of the employers, the down the road problem can be covered. Or it can be adjusted.
We have a problem right now. If something isn’t done to stimulate the economy to try to create jobs and keep major employers inside the boundaries of our land, funds are going to dry up. This is displayed by the sucking up of social security and medicare funds by Obama care. And the libs knew that would never cover itself and is getting worse. And they applied a tax to that and you see what it has done.
Got any ideas on how to cover our current loses that are growing every day, I’d love to hears it. But it’s going to take some tough love to get it done. Better a little at a time than the great bang like we already got.
rwood
That’s not my situation (although I do live in a high income tax state - the new Standard is still higher than my itemized deductions)
They’ve removed the personal/dependent exemptions which adds nearly $30k to our taxable income.
If you aren’t receiving EITC (which - BTW-was EXPANDED) - then larger families get punished.
But even if it were a situation of high mortgage/SALT - this thinking that this will somehow get people to move - and to vote republican? That’s just not going to happen.
New w-4 s will have to get filled out in January.
That’s when people will start catching on.
Looks that way.
The States that charge huge income taxes are usually the same ones that overspend, don’t balance their budgets and make insane contracts with Unions.
The rest of us - those living in states that live within their means - are tired of subsidizing the democrat thug states... No deductions for State Income Tax.
Hmmm...is it possible that this provision is a poison pill deliberately inserted to cause the bill to fail?
I think there have been poison pills in there but this isn't one of them; both are serious about this and don't care how many middle-class taxpayers get shafted. No, the poison pills as I see them are increasing the eligibility for the child tax credit to $1 million salaries, the Obamacare mandate repeal, things like that. Parts that will give the Democrats ammunition about "tax break for the wealthy" and also lose support of people like Collins who voted against Obamacare reductions to begin with.
“The rest of us - those living in states that live within their means - are tired of subsidizing the democrat thug states”
If you knew the subject on which you are speaking, you would know that the “blue” states of CA, NY, NJ, IL all pay more in Federal taxes than they receive in Federal expenditures of any kind.
They are subsidizing you, and your state.
Your state is able to keep taxes low because the feds are spending more there than they take.
People forget how RED upstate NY is.
None of this will make a difference in the electoral college, but our local republican leaders who voted for this monstrosity are going to suffer big time.
“The increases you are seeing in middle class taxes are being phased in by 2026”
My taxes go up on day one by several thousands per year, as does several others’.
As for suggestions, leave the current individual tax alone. And drop the corporate tax by as much as is feasible as a result.
But with zero-based revenue, budget and taxation, that cannot occur. For every dollar of cut to any entity, another entity must make up the difference. In the case of this plan, corporations (80%), those over $250k (9%) AND those under $75k (11%) all get a cut.
I, and those like me (over $100k/below $250k), with a mortgage in the suburbs...get to pick up the bill.
What most people do not realize, mostly driven by emotional ignorance, is this is not a red state/blue state issue. It’s an income/mortgage issue.
The most important determinants of whether you will itemize is income and whether you have a mortgage. Not where you live.
Only the deliberately uniformed believe that.
Comcast in my area was the sole cable provider...And of course they set the price of the cable...Later they were forced to let other cable companies 'rent' their cable lines but they charged enough that there wasn't room for competition...More cable companies, same outrageous price for cable...
Here's the deal...If Comcast corporate taxes are significantly reduced, will they reduce what they charge to customers??? Absolutely not...They'll just pocket the extra profit...And because of that, tax 'em to high heaven', I say...
Because millions of cars would be stranded on the highways...Because business would shut down since no one could affor to drive to work...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.