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That's not the point. Read on to learn the point of my early retirement and exodus from blue state high taxes...
Oh yeah, it's definitely a critical point. It speaks to the health of ourselves and our society.
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Middle class families shouldn't be paying any more than $10,000/year in SALT taxes. If they're paying more than that, their local and state taxing bodies are taxing too much. When middle class people wake up to that fact, things will change.
You really think 5% state income tax is too much? Or 7-8k in property taxes? What you are saying is that people should not live in high COL areas and therefore not earn high COL salaries. That doesn't sound reasonable to me. Again, it's not about the SALT taxes themselves IME. Maybe it is for some people, but that is not what I experience.
My state income taxes are high because my family grosses high. I mean, according to you I should not earn more than 50k/year, which would be fine if stuff cost the same here as it does in the midwest, but it doesn't. The cost is higher here, so we earn more. That doesn't mean we live high on the hog. It's just a different living situation. We have the same homes, properties, stuff, electronics as everybody else but we are taxed at higher rates and not given the same deductions.
Then the answer is "well, just move". Ok, so if that is the message to all of us (scientists, engineers, programmers, professors, etc). Then what? Do you think that would be good for you or anyone in this country? Just shut down shop? This line of arguing doesn't make sense to me.
Oh yeah, it's definitely a critical point. It speaks to the health of ourselves and our society.
It actually is a direct illustration of the Laffer Curve.
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You really think 5% state income tax is too much? Or 7-8k in property taxes?
Yes to the first (there are several states with 0% income tax), and the latter depends on the value of one's real estate.
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What you are saying is that people should not live in high COL areas and therefore not earn high COL salaries. That doesn't sound reasonable to me. Again, it's not about the SALT taxes themselves IME. Maybe it is for some people, but that is not what I experience.
High COL doesn't have to correspond to high SALT tax rates. Why do you think it does?
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My state income taxes are high because my family grosses high. I mean, according to you I should not earn more than 50k/year, which would be fine if stuff cost the same here as it does in the midwest, but it doesn't. The cost is higher here, so we earn more. That doesn't mean we live high on the hog. It's just a different living situation. We have the same homes, properties, stuff, electronics as everybody else but we are taxed at higher rates and not given the same deductions.
I don't care what you earn. The problem is that your blue state's SALT taxes are too high.
It actually is a direct illustration of the Laffer Curve.
I think it illustrates the impact of isolation via the internet and an inability to differentiate internal dialog from actual communication outside oneself.
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Yes to the first (there are several states with 0% income tax), and the latter depends on the value of one's real estate.
High COL doesn't have to correspond to high SALT tax rates. Why do you think it does?
I don't think it does. You do. I don't find 5% to be high. I find my salary to be high due to COL and the fed government finds it to be high while disregarding COL. Even without state income tax i don't qualify for the same deductions as others. If that were fair then I probably wouldn't care about the SALT tax (for my personal situation).
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I don't care what you earn. The problem is that your blue state's SALT taxes are too high.
I don't think that's it. I think the societal value contribution of blue states for this country, and the world for that matter, require our tax structure (the schools, institutes, entire sectors really, etc). Clearly, there is a correlation. We invest and those investments impact you, your family, the whole country. That is worth it imo.
Hopefully when we get the next administration in we can have another tax overhaul, but perhaps something really from scratch. It would be nice if the fed gov viewed the US for what it is- diverse in so many ways and that we shouldn't be all be plopped into one pot.
Trumpies always come up with a two word answer to our complex budget problems.
"Cut Spending".
Yet, their representatives - even when in power MOST of the time, never do so.
The reason we won't get proper tax reform is that the wealthy folks who pull the strings don't want it. Maybe the semi-wealthy do, but those with the real money and pull don't.
People with "only" 5 to 100 million aren't really relevant in the political process. We might as well just capitulate and have our POTUS be the proven single individual with the most money at "election time". That's where Citizens United and the GOP stand against campaign finance has taken us.
Looks like the complainers aren't alone......there are projected to be 10's of millions of them and refunds are quite a bit less than last year (given the same withholding)....
I think we will be even-steven because some of the money I make is dividends and cap gains. Also not paying SS, Medicare of other such taxes any longer, which definitely helps.
I only got "nasty surprises" twice in my career...which brings me to a PSA (god bless you if you even need to know this)....
If you sell a business a real estate and take back the loan(s) for both make sure - no matter what - that you included prepayment penalties! I made the assumption that they could never borrow money (they didn't have much credit or equity) at better rates...or at all. Well, you all know what happened after about 2000. Yep. they gave unlimited money to just about anyone at cheapo rates.
They paid me just in time for the new 39% plus rates AND I was in NJ, which had rates up to 9%. Ouch. But, those are the breaks. Lesson learned. Now you get it for free.
Most of the people getting screwed are in states that didn't vote for him. So if he loses NY by 20% more than he did, and loses the popular vote by 8 million instead of 3 million like he did..he can still win.
This was a calculated F-you to blue states, and tough luck to you if you live there and supported him.
The president isn't supposed to wage economic war on citizens based on what states they live in.
Looks like the complainers aren't alone......there are projected to be 10's of millions of them and refunds are quite a bit less than last year (given the same withholding)....
Yep. Tax season is just beginning. Millions and millions of middle class Americans are in for a nasty surprise. There's a reason the GOP made sure this didn't go into effect until after the 2018 midterms--for all the good it did them. People tend to remember when they have been screwed out of money.
Yep. Tax season is just beginning. Millions and millions of middle class Americans are in for a nasty surprise. There's a reason the GOP made sure this didn't go into effect until after the 2018 midterms--for all the good it did them. People tend to remember when they have been screwed out of money.
Looks like your topic has backfired on you.
Trump's tax cuts are Yugely popular with everyone. (well except maybe the TDS, and even secretly they like paying less too )
Even if they don't exceed the cap, they lose the $8100 personal exemption because it was eliminated. This $8100 used to be a deduction along with property taxes and mortgage interest for those that itemized. Now that couple can claim their mortgage interest and property taxes, but not the $8100 personal exemption. Ouch. In the end either their itemized deduction is much smaller or they choose the standard deduction and don't get any deduction for their mortgage interest or taxes. Wonder if this will cause more people to rent versus own.
This has absolutely nothing to do with my point. However, If I take you at your word, it is applicable to all parties regardless of state and therefore pointless to our discussion. But... you are not telling the whole story so I don't take you at your word.
"Personal exemptions
Last year, everyone could claim this deduction, which was $4,050 for yourself and each family member listed on your tax return. So, if you are single, you could claim one exemption, and if married with two children, you would have claimed four personal exemptions.
Lawmakers say that the doubling of the standard deduction effectively replaced this exemption – but that's not exactly true.
Take an individual filing in 2017. She could have taken her standard deduction of $6,350 and a personal deduction of $4,050, totaling $10,400.
Under the new tax law, her personal deduction is zero in 2018 and her standard deduction is $12,000. In this example, the single taxpayer has a larger deduction in 2018.
Families are in a different situation. In 2017, a family of four would have enjoyed a personal exemption of $16,200 ($4,050 x 4) and a standard deduction of $12,700, totaling a combined deduction of $28,900.
But in 2018, they can no longer claim the personal deduction, and their standard deduction is $24,000, or lower than the deduction they enjoyed in 2017.
But families may still come out ahead, given that some taxpayers lost deductions if their income exceeded certain thresholds. Starting in 2018, the phase-out for the personal exemption and standard deduction for married couples with adjusted gross income above $313,800 (and singles above $261,500) has been repealed. Also, families will receive higher child tax credits in 2018, so those tax credits may offset the impact of the loss of personal exemptions for families".
The GOP put in the flat tax in NC. The same thing happened, taxes went up for the majority of the state. It has taken changes to get it close to the dollar amount I had paid prior to the (HAHA) cut.
I am still working on the 2018 return and it is not looking good.
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