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Old 01-30-2020, 11:05 PM
 
Location: Greenville, SC
1,473 posts, read 2,750,070 times
Reputation: 1319

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CA, NY, CT, IL, etc., and even some in TX are leaving because of their property tax bills:

https://www.zerohedge.com/markets/it...ornia-new-york


Quote:
Rick Bechtel, head of U.S. residential lending at TD Bank, lives in the Chicago area and said he recently went to a party where it felt like everyone was planning their moves to Florida. "It’s unbelievable to me the number of conversations that I’m listening to that begin with 'When are you leaving?' and 'Where are you going?'" he said.
The number of GenXers in my age range, say 40's, who left recently or are planning to leave in the next few years from the part of NY I hail from is staggering, judging by social media posts I've seen and other on-the-ground assessments. People at or near their peak incomes are leaving blue states in droves, same for a lot of retirees of means.

The punishing taxes and in some cases costs of living in parts of blue states will keep pushing productive people out of them.
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Old Yesterday, 12:15 AM
 
2,129 posts, read 794,688 times
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It's more that the Trump Tax plan has these people with high property taxes paying more income tax. The increased income tax has created an additional increase in people wanting to move to Florida. Some states, like NJ, have managed to come up with a plan to lower people's tax burden to the big federal government. Hopefully these other states will follow. Everyone moving to FL is not a good solution in the long run. And Trump's grab on American's hard-earned money is not a good solution in the long run.
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Old Yesterday, 05:55 AM
 
4,302 posts, read 3,467,932 times
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Quote:
Originally Posted by TexasLawyer2000 View Post
And Trump's grab on American's hard-earned money is not a good solution in the long run.
But the economy.
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Old Yesterday, 07:13 AM
 
4,766 posts, read 4,942,842 times
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I mean I know the common answer is going to be “because that’s the way it’s always been” but I never understood why it made sense that you should owe less to the federal govt. in taxes because you chose to live in a state that had high income and/or property taxes. Property taxes go to support local things like fire, police, school districts, etc. things that you as a San Fran resident directly benefit from and someone as a resident of Florida gets no benefit from. So why should you get to deduct that from what you owe to support federal infrastructure? It’d be like deducting your cost of private HS tuition or a private security detail.
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Old Yesterday, 08:05 AM
 
1,313 posts, read 621,514 times
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I like the usual complaint about income being double taxed as a result of the SALT cap. If that's the big issue, there's nothing stopping the states from giving it's citizens a deduction for federal taxes paid. Solves that problem.

A congressman from NJ is squeaking about the devastating effects this law has had on his constituents. They probably should have worried more about it when they were giving state and muni workers, not to mention the teachers unions, anything and everything they wanted.

https://www.gardenstateinitiative.or...hxo-ADdv-ZyHeM
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Old Yesterday, 08:16 AM
 
Location: New Jersey
6,511 posts, read 3,368,192 times
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^ Exactly. Those Democrat controlled states have runaway spending problems and then have to raise taxes on their residents to pay for that wasteful spending but why should the Feds have to be more considerate of those states than other states that are better run (not by Democrats)?

Trump just made it fairer for all states, which is what should have been all along. If those Democrat states don’t want an exodus, they should work on reducing their taxes. Blaming it on Trump is a cop out.
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Old Yesterday, 08:17 AM
 
78 posts, read 55,075 times
Reputation: 120
What part of NY are you from?
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Old Yesterday, 09:16 AM
 
Location: VT; previously MD & NJ
2,734 posts, read 1,637,909 times
Reputation: 8040
Quote:
Originally Posted by mizzourah2006 View Post
I mean I know the common answer is going to be “because that’s the way it’s always been” but I never understood why it made sense that you should owe less to the federal govt. in taxes because you chose to live in a state that had high income and/or property taxes. Property taxes go to support local things like fire, police, school districts, etc. things that you as a San Fran resident directly benefit from and someone as a resident of Florida gets no benefit from. So why should you get to deduct that from what you owe to support federal infrastructure? It’d be like deducting your cost of private HS tuition or a private security detail.
Because why should you pay federal taxes on money you spent in state taxes? That is getting taxed on taxes you paid.

Also, when people bought their homes, their budget was based on having that federal deduction for state taxes. Now the deduction... or a good chunk of it... is gone. So monthly cost of living in that house are much higher. They can't afford it anymore.
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Old Yesterday, 09:38 AM
 
1,313 posts, read 621,514 times
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Quote:
Originally Posted by ansible90 View Post
Because why should you pay federal taxes on money you spent in state taxes? That is getting taxed on taxes you paid.
Why pay state taxes on money you spent in federal taxes? That is getting taxed on taxes you paid.

Quote:
Originally Posted by ansible90 View Post
Also, when people bought their homes, their budget was based on having that federal deduction for state taxes. Now the deduction... or a good chunk of it... is gone. So monthly cost of living in that house are much higher. They can't afford it anymore.
Does the purchase of a home guarantee that costs of living (taxes, insurance, etc.) won't go up? Of course not. If you maxed out your home buying dollars to that extent, the fault is your own if you can no longer afford it.
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Old Yesterday, 09:48 AM
 
485 posts, read 208,545 times
Reputation: 1321
Quote:
Originally Posted by ansible90 View Post
Because why should you pay federal taxes on money you spent in state taxes? That is getting taxed on taxes you paid.

Also, when people bought their homes, their budget was based on having that federal deduction for state taxes. Now the deduction... or a good chunk of it... is gone. So monthly cost of living in that house are much higher. They can't afford it anymore.
Federal income tax laws change quite often. These changes are usually good for some people and bad for others. Those who come out on the losing end of the change (such as I have on several occasions) usually don't like the change, but that doesn't mean the change was a bad thing or that it was unwarranted.

Perhaps instead of complaining that you lost a federal tax break because your state taxes are so high, you should be complaining to your state legislators to remedy the high tax situation. You can't have it both ways. If you want the benefits of having better schools, roads, or whatever in your state, then you and the other taxpayers in your state should pay for it without expecting subsidies from people in states who have lower taxes and lower budgets.

If you can't get your state to lower the state taxes, there is always the option to do as many others are doing... pack up and leave. Go to a state that has more responsible government and lower state taxes... just don't bring your liberal "tax and spend" ideas with you or you'll quickly turn the new state into the sorry mess of the state you just left.
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