Posted on Nov 5, 2017
Trump tax plan eliminates big perk for high-tax states
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Let me see if I understand this: "If you pay high state income taxes--think California, New York, and many other places--you'll care about this. Tens of millions of Americans claim this tax deduction, writing off their state and local taxes to reduce their federal income tax." So, my state does not charge income tax and property tax is minor considering when I lived in NJ. The high tax states want the feds to give their people a break...and let others helps pay their taxes. Maybe if CA NY and NJ voted against taxes and tax voting politicians....they would not have to worry about taxes. Did I notice that the three high tax states are also sanctuary city states? I wonder if there is a connection?
Trump tax plan eliminates big perk for high-tax states
Posted from nypost.com
Taxes
Congress
United States Senate
Posted 7 y ago
Responses: 6
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On TV they are talking about we need to keep the State and Local Tax Deduction. Their state made that tax on their state! They should pay it, and not the rest of the country. But, why do they complain about the Federal Gov, when their high state taxes come from...... THEIR STATE GOV!!!!
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SSgt Christopher Brose
SFC Thomas Butler - No it doesn't, because it's an argument based on principle. High tax states like CA/NY/NJ get away with artificially high taxes because the deduction reduces the impact. It also reduces the amount of federal revenue collected from those high tax states, which means low tax states are subsidizing the high tax states. What happens to the money after it's collected doesn't change the fact that that's what's happening.
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SFC Thomas Butler
SSgt Christopher Brose - Actually the opposite is true. It allows artifically LOW taxes in states such as South Caroina, North Dakota, Florida, Louisiana, and Alabama (the states which take the most from the federal government), to the extent that them and states such as Mississippi are almost totally dependent on the federal government for services to their citizens. CA, NY and NJ send MORE money to the U.S. Treasury than any of their low state counterparts, yet use less federal funds.
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SFC Thomas Butler
SSgt Christopher Brose - Really? Please explain exactly how they're two different things. Your argument was that, "High tax states like CA/NY/NJ get away with artificially high taxes because the deduction reduces the impact". Yet those states, even with the allowed deductions in federal taxes, take less, much less, from the federal government to help support their infrastructure and to subsidize social welfare programs to their citizens than states with no or low income tax. California's state government, for example, takes the 46th smallest amount of federal dollars to support it and it's citizens. As a matter of fact, Mississippi, Louisiana, and Tennessee all take more money from the federal government than CA does combined.
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We, the middle class, are subsidizing the wealthy that itemize their deductions and get to pass their state and local taxes, along with huge mortgage interest on two homes on to the rest of us. I keep on hearing how the super rich want to pay more, but it seems like they do everything possible to avoid paying them. My issue isn’t so much the amount being sent to the IRS, but how it is spent.
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SSgt GG-15 RET Jim Lint
I agree. Often I do not make enough deductions that makes it better to not take the $6K standard deduction. Did anyone notice they have a new $12K deduction per person, and family getting $24K. Not sure why they have not talked about that. I think that will be the most helpful for me.
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I want my Federal Taxes reduced. I live in the Socialist Democratic State of Maryland and I pay exorbitant property taxes. I DGAF about NY or CA or NJ. If the residents of NJ, NY and CA are so concerned about high State and Local Taxes; then they should elect representative that will not continue to raise taxes.
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