ROFLMAO - Trump tax plan eliminates big perk for high-tax states - ROFLMAO (Washington: real estate, home)

[fedguy2]

Trump tax plan eliminates big perk for high-tax states

Bad news for New Jersey if this one passes. They'll still be people on here defending the HIGH PROPERTY TAXES. Sad.

WASHINGTON — President Trump will release a sweeping plan Wednesday to cut taxes and simplify the tax code that will eliminate the deduction for state and local taxes — a move that Gov. Andrew Cuomo has warned would be a “death blow” for New York [and New Jersey].

Despite fierce opposition from high-tax states when the idea was first floated, the Trump administration is pushing ahead with the repeal, which would remove state and local income and property taxes as deductions on federal returns.

The perk — first enacted with the income tax in 1913 — is most heavily used in coastal, bluer states that include New York, California, New Jersey and Connecticut.

Repealing it would increase federal revenue by $1.3 trillion over the decade, according to the Tax Policy Center.

But it would also slam high-income New Yorkers [and New Jerseyans].

[newdude05]

Thought it was just income tax didnt realize it's also PROPERTY tax. Oh crap! bye bye glen ridge!

This is definitely a dickmove as it punishes almost exclusively blue states. I am surprised he agreed to it being heavily invested in NY/NJ real estate and it will hurt the market considerably.

I was willing to eat the income tax deduction removal, given all the good doubling the standard deduction will do for everyone across this country to simplify the tax code and move more people off itemized into standard deduction. Also i am supportive of the corporate tax proposals that will bring significant money/investment back to US and make us competitive again.

But missed the part where property tax is no longer deductible, this will be horrible for NJ especially the very high tax areas like glen ridge, millburn, montclair etc.. properties in those area will take a tremendous hit.

sht just got real!

[JaRuss01]

For the towns you listed --- Who has a $20-35k property tax bill and makes under $200k (below AMT). A vast majority of people in those towns get hit with AMT and cant deduct property tax. They're stroking $10-30k AMT checks each year when they file with zero property tax deductions. Those people may actually come out slightly on top with the elimination of AMT, and bracket rejiggering.

For those currently below AMT levels, with 10k plus property tax bills, will be impacting the most (incrementally)

[4NJseasons]

Originally Posted by newdude05

I was willing to eat the income tax deduction removal, given all the good doubling the standard deduction will do for everyone across this country to simplify the tax code and move more people off itemized into standard deduction.

Don't count on doubling of standard deduction. Per one estimate, the actual increase will be just 15%. Trump tax plan: 'Doubled standard deduction' is misleading - Business Insider

[fedguy2]

Originally Posted by JaRuss01

For the towns you listed --- Who has a $20-35k property tax bill and makes under $200k (below AMT). A vast majority of people in those towns get hit with AMT and cant deduct property tax. They're stroking $10-30k AMT checks each year when they file with zero property tax deductions. Those people may actually come out slightly on top with the elimination of AMT, and bracket rejiggering.

For those currently below AMT levels, with 10k plus property tax bills, will be impacting the most (incrementally)

Here comes the justification. LoL - Some people just like bending over...

[fedguy2]

It's actually a brilliant political move as it rewards states that voted for him and punishes ones that diddn't.

[JaRuss01]

[quote=fedguy2;49652535]Here comes the justification. LoL - Some people just like bending over

You guys know that AMT filers are prevented from deducting property tax right? They are proposing the elkmation of AMT

For many currently in AMT:

Pre tax plan - AMT lockout of property tax deduction. Still need to cut a whopping $10-30k check in AMT penalty each year when you file

Post tax plan - Still no property tax deduction. No more AMT penalty bills

[fedguy2]

So it's the middle class and upper middle class getting screwed while the poor and uber rich make off like bandits?

[nybbler]

Originally Posted by fedguy2

So it's the middle class and upper middle class getting screwed while the poor and uber rich make off like bandits?

UMC is hitting AMT around here.

[MrsPiggleWiggle]

Marriage penalty plus long commutes and now no deduction on state and local income taxes... I think this could kill dual income families in the area. Having women stay at home seems to be one of Trump and Ryan's pillars so.... Way to empower women...