When $10K is not enuf
Submitted by EdMass on Fri, 08/24/2018 - 12:31pm
Treasury, IRS move to block blue state workarounds on tax caps
The Treasury and IRS have issued new rules that will block blue states' attempts to circumvent the new $10,000 cap on state and local tax deductions.
The proposed regulation was released Thursday afternoon.
snip
The new tax law also eliminated personal exemptions and cut most deductions. Though the SALT deduction remained, the $10,000 limit means that homeowners in states with the highest property taxes and home values will feel the brunt.
In 2015, the average SALT deduction for New Yorkers who claimed the break was more than $22,000, according to the Tax Policy Center. In New Jersey, the average deduction was around $18,000.
There is a reason I now live in TX instead of MA...
Comments
because you're opposed to having social goods
supplied by government? you don't want poor people to have access to healthcare? you'd rather pay your mechanic to fix your car than pay taxes to fix the potholes? etc?
The earth is a multibillion-year-old sphere.
The Nazis killed millions of Jews.
On 9/11/01 a Boeing 757 (AA77) flew into the Pentagon.
AGCC is happening.
If you cannot accept these facts, I cannot fake an interest in any of your opinions.
The GOP appears to be imploding.
"Religion is what keeps the poor from murdering the rich."--Napoleon
I don't understand this. What am I missing?
I thought the Trump admin cut taxes for rich people and stuck it to poor people on a federal level . That's what non Fox msm has said.
This sounds like the IRS, under the Trump admin, is actually forcing the hands of supposed blue states, and making rich people pay up. Except, if this is state income taxes, why is the IRS involved? Texas doesn't have a state income tax, but I thought that money went to the state that collected it, not the Fed govt. What am I missing?
State income taxes
are deductible (along with sales taxes). The new tax law limits the deduction (along with most itemized deductions). The idea appears to be to get the wealthy to support gutting the local tax base because they can no longer reduce their federal taxes by paying higher local taxes. Most people given a choice would prefer to pay local taxes.
Yes it's not an exact trade, but if your deductions are high enough it can change your tax bracket.
We can’t save the world by playing by the rules, because the rules have to be changed.
- Greta Thunberg
Ohhh
I see.
Question, though: do you save every receipt for every single thing you buy throughout the year, add up the sales tax, and file it for the deduction?
That seems like a lot of work, but I guess if you buy a lot of stuff, it could help. What a mess during an audit, though.
sales taxes are not the big deal.
the big deal are the two big-ticket items, property tax and state (or local) income tax.
the bottom line here is that federal welfare states (ie. impoverished Red states, usually in the south, that receive far more in federal payouts than they contribute in federal taxes) just had another engine added to their gravy train, sucking additional wealth out of the blue states so it can be spent on military bases and such in the red states. meanwhile, the social programs favored by the blue states just had their price tags go up a big chunk, because that money is now being double-taxed -- hilarious, considering what a bete-noir the phrase "double-taxed" has always been for the raving fools of the right.
so yeah, if you're a reasonably well-off professional Blue Voter with a family income of $150 to $250K paying a mortgage somewhere in California, you probably just saw a really significant bump in your taxes, especially if you have more than 2 kids.
The earth is a multibillion-year-old sphere.
The Nazis killed millions of Jews.
On 9/11/01 a Boeing 757 (AA77) flew into the Pentagon.
AGCC is happening.
If you cannot accept these facts, I cannot fake an interest in any of your opinions.
There is a standard sales tax deduction
So you don’t have to keep receipts unless you buy something big like a car. I do track mine bc Washington has the highest sales tax in the country and I’m a data nerd.
We can’t save the world by playing by the rules, because the rules have to be changed.
- Greta Thunberg