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One thing liberals are going to complain with Trumps tax code is no longer having the ability to write off state taxes. They will downplay ALL Americans being able to write off more in the standard deduction. Who benefits from writing off state taxes the most? People who own expensive homes and live in high tax states like New York and California. This is the rest of the country who live in lower tax states and lower valued homes subsidizing these high tax states. Essentially the rich people will lose this tax deduction so the rest of us can increase our standard deduction.
Sen. Schumer said: “Well, but he also takes away things like the mortgage interest deduction, the local — state and local property …”
Chris Wallace called him on the lie and Schumer tried to spin his way out of it.
Chris Wallace: “No, no, no, that’s not true. He doesn’t take away the mortgage. No, he does not take away the mortgage interest deduction.”
Schumer: “You cannot do it without the standard deduction. He takes away state and local, as well, and middle-class people get far less of a benefit, many of them were hurt. One estimate said that millions would pay more, and the rich do extremely well.” (Schumer admitting the middle class was hurt by Obama's tax increase)
Rich liberals reduce their taxes by alot of money using their ability to write of state and local taxes (real estate taxes). Does that benefit you or them?
[quote=petch751;49648398]One thing liberals are going to complain with Trumps tax code is no longer having the ability to write off state taxes. They will downplay ALL Americans being able to write off more in the standard deduction. Who benefits from writing off state taxes the most? People who own expensive homes and live in high tax states like New York and California. This is the rest of the country who live in lower tax states and lower valued homes subsidizing these high tax states. Essentially the rich people will lose this tax deduction so the rest of us can increase our standard deduction.
The left is going to scream about it.[/QUOTE
This will hurt home owners and those who choose to live in higher tax communities because of the good schools.
There are as many red states with state income taxes that will be affected by this as blue states. In fact there are only 7 states without any state income tax.
Many lower class and middle class people can't afford a house so they can't deduct mortgage interest or taxes. If you can itemize, the benefit is usually minimal. Trumps tax plan increases the standard deduction and takes away the local tax deduction.
Who benefits most from a higher standard deduction?
People who can afford bigger homes may pay more intestest and because the value of their property is higher, they also pay more local taxes, they are able to deduct mortgage interest and local taxes, along with other deductions they can easily benefit from itemizing deductions.
By taking away the local tax deduction it is taking away a deduction that more wealthy people enjoy but lower and middle income classes can't and by giving a bigger deduction to as a standard, the lower and middle income classes who can't afford homes benefit.
Don't let the media educate you about taxes, they have an agenda.
Schumer intended to try to fool people who don't understand taxes into believing that the rich would benefit and the middle class would not when the opposite is true. If he had misspoken he would have corrected it when given the opportunity but he didn't, instead he tried to spin it.
You'll still be able to itemize where people lower on the income scale and are not able to get above the standard deduction will take a larger deduction and will be able to keep more of their money.
Mortgage interest and property taxes, reported as a below-the-line deduction. Above the line" deductions are better than those "below the line, since mortgage deduction is below the line it does not reduce your taxable income as much as above the line.
My question to you is how much of your income should be dedicated to housing.
One thing liberals are going to complain with Trumps tax code is no longer having the ability to write off state taxes. They will downplay ALL Americans being able to write off more in the standard deduction. Who benefits from writing off state taxes the most? People who own expensive homes and live in high tax states like New York and California. This is the rest of the country who live in lower tax states and lower valued homes subsidizing these high tax states. Essentially the rich people will lose this tax deduction so the rest of us can increase our standard deduction.
The left is going to scream about it.
I am a conservative and I am screaming about it lol
Well not screaming but it will definitely negatively impact me. My real estate taxes were a huge deduction. I am very middle class for where I live.
I am a conservative and I am screaming about it lol
Well not screaming but it will definitely negatively impact me. My real estate taxes were a huge deduction. I am very middle class for where I live.
ahh .. zip code 10543 which is New York. Also a high cost living area where housing costs alot more than other area's. I'll bet if you lived in my state you'd be able to afford alot more house.
Maybe you should move to a lower tax state.
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