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... He [Steve Moore]said he was in silicon valley talking to a bunch of wealthy Google execs, and that they would not shut up about the SALT deductions. They said it was killing them.
As well it should. High taxes voted in by one state should impact the residents of that state, not other states. Eventually those Google millionaires are going to think twice about voting in politicians who jack state and local taxes to the moon.
Quote:
Originally Posted by craigiri
You are giving one extreme example.
But go to NH or VT and talk to the carpenters, plumbers, builders and suppliers who outfit the 10's of thousands of more modest winter and summer 2nd homes.
For whatever reason you are declining to consider the entire "economic ecology" of massive areas of the country....that thrive on longer term tourism (2nd homes, camps, etc.).....
As I have noted, changes to policy are always welcome. But one does not go pushing a certain logic for 4 or 5 decades and then, instantly, change things...along with doubling the deficit at the same time.
That's simply not thoughtful policy.
If actual smart people got together and studied all the trickle down from the ski chalets in NH and VT and the shore houses in NJ and elsewhere....and then determined that they wanted to leave those economies out to dry, that's one thing. Even if they decided on that it should be done over many years......
The communities in VT that fund their schools from the property taxes of vacationers (2nd homes) will be hurt...as well as the contractors and suppliers. The money will have to come from somewhere...or, our populace will just get dumber??
Or, do you support Trump just borrowing more and giving it away free?
Here is an easy one for you.
With the SALT deductions the deficit was down to 500 Billion a year.
Now they are cut...and the Deficit has doubled and is forecast to be there for a decade (or forever, let's face it)....
And you say this is a great thing??? If getting rid of these deductions worked so well, why can't we pay the bills?
Well you post a page worth of other topics, but did not at all address the post you quoted. I will address one of your points, however.
The SALT deduction cap will tend to reduce the federal deficit, not increase it. It means more federal tax revenue. The deficit would be even worse with out the SALT cap than with it. So if you're worried about deficits, you should like it.
It's like if you get a raise but increase your credit card spending even more. By your 'logic,' that darn raise caused your credit card debt to go up. No it didn't. Increased credit card spending caused it.
But go to NH or VT and talk to the carpenters, plumbers, builders and suppliers who outfit the 10's of thousands of more modest winter and summer 2nd homes.
For whatever reason you are declining to consider the entire "economic ecology" of massive areas of the country....that thrive on longer term tourism (2nd homes, camps, etc.).....
As I have noted, changes to policy are always welcome. But one does not go pushing a certain logic for 4 or 5 decades and then, instantly, change things...along with doubling the deficit at the same time.
That's simply not thoughtful policy.
If actual smart people got together and studied all the trickle down from the ski chalets in NH and VT and the shore houses in NJ and elsewhere....and then determined that they wanted to leave those economies out to dry, that's one thing. Even if they decided on that it should be done over many years......
The communities in VT that fund their schools from the property taxes of vacationers (2nd homes) will be hurt...as well as the contractors and suppliers. The money will have to come from somewhere...or, our populace will just get dumber??
Or, do you support Trump just borrowing more and giving it away free?
Here is an easy one for you.
With the SALT deductions the deficit was down to 500 Billion a year.
Now they are cut...and the Deficit has doubled and is forecast to be there for a decade (or forever, let's face it)....
And you say this is a great thing??? If getting rid of these deductions worked so well, why can't we pay the bills?
I live in VT and acknowledge our economy is dependent upon affluent tourists, but as a local elected official close to property tax matters I have yet to hear a word of the SALT matter being a factor here. 2nd home owners from NY, NJ, CT, and elsewhere continue to buy and sell properties same as they always have. As high as we here in VT think our taxes are, property taxes are nothing compared to what these 2nd home owners are paying where they come from.
Cap gains and wages should be taxed differently, because the economic impact of taxing them is different.
For a long time the conventional position of most economists was that the cap gains tax rate should be zero. That is because the US economy, being still capitalists, runs on the raising of capital. In most if not all business enterprise, production and costs precede sales and profits. Hence most business runs on credit, i.e. the raising of capital. Tax capital gains and you get less business activity, and less prosperity for everyone.
this may or may not be true. But it changed when people began being compensated for their work with capital assets that were taxed favorably at distribution AND especially for the recipient.
If I invest $100K directly in 10 businesses...
4 fail, and my $100K is gone.
2 break even to the extent I get my money back plus inflation
3 are home runs, and I double my money ...
then of course you don't just tax me on the homers, and ignore those losses.
But if you pay me $100K a year on a lowered basis by stock options/awards, and that is a large portion (pick a number, 1/3, 1/2, more - it's INSTEAD OF wages) of my work compensation, then I shouldn't be able to pay a significantly lower % on that - today or 10 years from now.
But that's the problem with too much government. Business is 3x as smart as government. Government wanted to stop the super-high cash compensation of executives - "pay for performance". Not the worst idea in theory. So they changed laws, and *voila* management compensation is now heavily deferred at favorable tax treatment.
I wonder how much of that has contributed to the widening income/wealth gap.
Well you post a page worth of other topics, but did not at all address the post you quoted. I will address one of your points, however.
The SALT deduction cap will tend to reduce the federal deficit, not increase it. It means more federal tax revenue. The deficit would be even worse with out the SALT cap than with it. So if you're worried about deficits, you should like it.
It's like if you get a raise but increase your credit card spending even more. By your 'logic,' that darn raise caused your credit card debt to go up. No it didn't. Increased credit card spending caused it.
Yet the debt keeps increasing. All the SALT cap did was increase the imbalance that already existed. Blue states already pour money into red state coffers and this makes it more so. And the GOP that pretended to care about debt has added another trillion under Trump while also giving him a Space Force like he’s a child.
Are they using it for food? Or buying soda and selling the soda for cash like people in Appalachia do. Food stamps are one of the cheapest public assistance programs we have but we could end food stamps if farmers will give up the $50 billion they’re getting.
it's especially spectacular when you just make random **** up.
But go to NH or VT and talk to the carpenters, plumbers, builders and suppliers who outfit the 10's of thousands of more modest winter and summer 2nd homes.
Quote:
if your mortgage existed before Dec.16, 2017, you’ll continue to receive the same, more generous tax treatment as under the old rules, with the interest on mortgages and any other loans deductible on up to $1 million in debt.
Quote:
For tax years 2018 to 2025, the limit is up to $750,000 of debt secured by your first and second homes – or $375,000 if you’re married and filing separately.
I just can't believe that a liberal is arguing folks need a break on more than $750K or $1MM in mortgage debt.
wait, wait, wait .... you're decrying a decade-old study and linking to a 2013 story?
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