Calvary Is On The Way - DT "Open" to Changes in SALT Tax Caps (renter, mortgage)
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The good senator also pointed out the irony (if not hypocrisy) of Andrew Cuomo and other democratic governors moaning about changes in the tax code designed to address the wealthy; to wit ensure they pay a fairer share of taxes.
Oh, come on. $10,000 combined state income tax and property tax is NOT the realm of the wealthy. For many, that is solidly middle class.
If you said the limit was $50,000, then maybe you'd have a case there.
The State's Office of Policy Management said, in a 2017 report, that net out-migration was up 55% over the two year period of 2014-2016. That number could be construed as people fleeing by some. That is not the media being sensational, that is the government reporting on census data. Also, while you are correct that the number of those earning more than $100,000 moving into CT has gone up, it is also true that those earning higher than $5,000,000 have been moving out in larger numbers over a number of years. In addition, between 2015-2016, those earning $200,000 or more were the largest group of earners leaving CT- over 2000 filers! These numbers are not good.
As has been noted here before, a lot of those people leaving the state were retirees who delayed retiring because of the recession. That data could easily be a blip due to the economy rather than a significant trend worthy of concern.
Exactly how many people earn over $5 million. Not a lot so even if a couple leave, the statistic changes significantly.
Though we did see more earners making over $200,000 leave, how many people making over $200,000 replaced them? People buying all those $1 million plus homes in Fairfield County aren't making under that.
Also note that we now have nine billionaires on the Forbes 400 list where previously we had seven. Wouldn't we have less on the list if it was as bad as being claimed? Again, it is not nearly as bad as some are claiming. For years now we have had people come to this forum claiming that the sky is falling yet we are still here and the state is doing well economically. Jay
First of all, I do not consider the taxes we pay to be getting "soaked". You get what you pay for. It is clear that the lower taxed states are lower for a reason. Second, people are not fleeing our state as the sensationalist media and the conservatives like to tout. As has been shown here a number of times, the number of people earning more than $100,000 per year has gone up, not down. I believe the same thing is happening in other high tax states. If taxes were so important to these people, that number would have gone down, not up.
Clearly the game has changed since the election. Senator Grassley can say all he wants BUT the truth is the matter will be a key issue in the coming years. People are starting to realize the true impact of the tax changes made too quickly and without the thorough review and vetting that should have taken place. When people like my friend who is a retiree from a low tax Republican state realize that he is now paying more in taxes than they did the previous year, it shows who the tax cuts really are benefiting and it is not the middle class. Jay
To be completely fair, one would need to examine the particulars of your retiree friend’s earnings from year to year , and all the related contributing data regarding credits and deductions
I had my taxes competed , and I am receiving the first refund of Federal and State taxes in around a dozen years. My take home pay increased the first week of the tax law changes. I said it before. It is a case by case basis. Before generalizing about who it hurts or helps, each individual situation needs to be examined. My taxable income has remained pretty much the same from last year to this year.
To be completely fair, one would need to examine the particulars of your retiree friend’s earnings from year to year , and all the related contributing data regarding credits and deductions
I had my taxes competed , and I am receiving the first refund of Federal and State taxes in around a dozen years. My take home pay increased the first week of the tax law changes. I said it before. It is a case by case basis. Before generalizing about who it hurts or helps, each individual situation needs to be examined. My taxable income has remained pretty much the same from last year to this year.
Your refund means nothing. That is just how much you over paid the Federal government. What you should compare, like my friend did, is the actual amount you are paying this year verses last year. Of course you should note if the is any significant difference in the amount you earned. That will tell you if the tax cuts really helped you or not. In my firends case it did not. Jay
Oh, come on. $10,000 combined state income tax and property tax is NOT the realm of the wealthy. For many, that is solidly middle class.
If you said the limit was $50,000, then maybe you'd have a case there.
You also have to remember that the small pocket of areas with high property valuations, high taxes (income & property), and arguably high wages may not necessarily reflect large swaths across this country. There are many that tag "us" as wealthy simply because we (are able) pay X amount in property taxes or Y amount in State income tax. In their respective lower cost of living areas paying X or Y is probably reserved for only the wealthy while many in the HCOL areas are smack in the middle class or just getting by.
Part of the problem is the term "wealthy" is loosely thrown around without a universal definition. Kind of like living wage.
Quote:
Originally Posted by JayCT
Your refund means nothing. That is just how much you over paid the Federal government. What you should compare, like my friend did, is the actual amount you are paying this year verses last year. Of course you should note if the is any significant difference in the amount you earned. That will tell you if the tax cuts really helped you or not. In my firends case it did not. Jay
In addition to looking at their total tax obligation they should calculate their effective tax rate.
Your refund means nothing. That is just how much you over paid the Federal government. What you should compare, like my friend did, is the actual amount you are paying this year verses last year. Of course you should note if the is any significant difference in the amount you earned. That will tell you if the tax cuts really helped you or not. In my firends case it did not. Jay
Trust me when I say it means a lot for the first time in 12 years that I am not writing two checks in April.
Sure I over paid, but for me, my tax obligation was less than less year. As I said it is a case by case situation. And for me, owning my home without a mortgage, the doubling of the standard deduction was the key ingredient. I think it will help those that rent.Best of Luck to everyone else!
I itemize, max out the SALT deduction and am paying less this year in taxes. The lowering of rates coupled with the adjustment to the AMT made a difference. This focus on the SALT deduction cap is missing the forest for the trees IMO - if your overall tax liability goes down, why worry about the SALT deduction cap?
I itemize, max out the SALT deduction and am paying less this year in taxes. The lowering of rates coupled with the adjustment to the AMT made a difference. This focus on the SALT deduction cap is missing the forest for the trees IMO - if your overall tax liability goes down, why worry about the SALT deduction cap?
I don't have an issue with the SALT cap per se, just the manner in which it was done - it was a thinly veiled attack on blue states and part of a bad overall tax reform package.
Secondly, many who are upset with the SALT cap are upset because they are paying more tax than they would have under pre-TCJA law, in large part due to the cap.
I don't have an issue with the SALT cap per se, just the manner in which it was done - it was a thinly veiled attack on blue states and part of a bad overall tax reform package.
Secondly, many who are upset with the SALT cap are upset because they are paying more tax than they would have under pre-TCJA law, in large part due to the cap.
Those with legitimate gripes re SALT cap I've seen in the other sub forums are those from extreme property tax areas such as LI. Most of the others don't have an understanding of taxes or what metrics they should be comparing and are complaining due to their refund being lower than last year. Then they extrapolate their individual case as being representative of all "middle class".
Those with legitimate gripes re SALT cap I've seen in the other sub forums are those from extreme property tax areas such as LI. Most of the others don't have an understanding of taxes or what metrics they should be comparing and are complaining due to their refund being lower than last year. Then they extrapolate their individual case as being representative of all "middle class".
Many of them are just being manipulated by the media. One of the problems today is that modern technology and the MSM have lowered the attention span of the citizens. CNN actually changed their broadcast model some years ago favoring quick delivery with colorful graphics and music , and then a rapid shift to another subject.
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