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I live in Texas, a Republican controlled state and I am hardly rich. I am single, live in a modest house for my area (200k) and work 6 days a week. Our sate has one of the highest property tax rates in the country.
Anyone that believes this tax cut is going to save anyone money but the rich must still believe in
Santa Claus and the Tooth Fairy.
Surprised that Texas has a high property tax. I do think there is an unfairness in the system but to remove that deduction entirely would damage middle class property owners.
Surprised that Texas has a high property tax. I do think there is an unfairness in the system but to remove that deduction entirely would damage middle class property owners.
They have no income tax. Some states have both, high real estate taxes AND an income tax. Blue state IL is one of them. IL has higher property taxes than TX, and high sales tax, too (Chicago sales tax is 10.25%).
The truly rich do not work for wages, and their income gets much more favorable tax treatment (e.g., 15% tax on dividends & capital gains, as opposed to 25 - 35% tax on wage income in 2017) https://www.fool.com/retirement/2017...ill-i-owe.aspx. Corporations pay only about 10% of Washington's taxes, a percentage that has been declining for the last 60 years (regardless of the nominal rate that none of them pay). https://www.nationalpriorities.org/b...-101/revenues/.
No matter what, the truly wealthy (found in Big Government and Big Business) will never pay MORE. They write the legislation, and they have the ethics/morals of their fellow sociopaths--including an absolute distain for the peons who pay for their lavish lifestyles. Democrats, Republicans--the only reason we still use these labels is because the 2 Parties use different excuses to rob the people they're supposed to represent.
Nothing will get better because Washington gets about 90% of its income from taxing WAGES --and only the Working Class has to work for wages. Federal politicians simply will NOT control their insatiable overspending, and since they've "borrowed" to the point of interest limiting new spending sprees, the working class MUST continue to finance even bigger Big Government.
That means that any tax reform that politicians claim "increases taxes on the rich" simply means a heavier burden on those workers in their peak earning years, who are trying to save for retirement and its exploding health care costs (typically without pensions, facing massive Social Security cuts due to the accounting scam misnamed the Social Security "Trust Fund," and after a decade of choosing between zero-interest rates or the periodic collapses of stocks & mutual funds for their savings).
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.
The same people who call for "closing" loopholes and "special interests" complain when THEIR "special interest" is threatened.
"There is NO interest like SELF interest"
Most don't have clue about how big the lobby industry is.
They have no income tax. Some states have both, high real estate taxes AND an income tax. Blue state IL is one of them. IL has higher property taxes than TX, and high sales tax, too (Chicago sales tax is 10.25%).
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.
"My question to you is how much of your income should be dedicated to housing?"
As much as YOU feel like.
To the issue at hand, maybe these states should LOWER their taxes if they are so concerned about their people!
Maybe education, or lack thereof, has something to do with it.
At a minimum, getting a high school diploma and your chance of getting a job INCREASES TREMENDOUSLY
Oh, I don't disagree. I'm just saying that Democrats are fighting to keep a tax break that minorities disproportionately DON'T get: the real estate tax deduction, because a much higher percentage of minorities than Whites rent.
And here so many of you ridiculously believe Dems actually champion minorities' issues.
Starling...you simply chose to live in the wrong area when relocating. My sympathies, but ones personal misjudgment does not support a universal political narrative.
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Originally Posted by Jstarling
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This will hurt home owners and those who choose to live in higher tax communities because of the good schools.
Oh, I don't disagree. I'm just saying that Democrats are fighting to keep a tax break that minorities disproportionately DON'T get: the real estate tax deduction, because a much higher percentage of minorities than Whites rent.
And here so many of you ridiculously believe Dems actually champion minorities' issues.
People use percentages when they don't want to talk about REAL NUMBERS.
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