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Are you talking a home worth 350k or an annual household income of 350k?
If household income of 350k that is def upper middle class and not middle class.
Figure for Middle class a SALT deduction is effectivley a 1:4 return on federal taxes.
1:3 for upper middle class.
These two brackets benefited from the federal rates for the low to high 100k incomes going from 32%>28% and 28%>24%.
It takes a large amount of state tax deductions to offset these federal taxes (Remember a deduction essentially being basically 1:4 or 1:3).
Now did the people in the lower income of the "upper middle class" in high tax states benefit less than those in low tax states? Of course. I could see an argument in raising it to 15-20k - but removing it only benefits the wealthy.
Sorry for the confusion and I can see how my wording is off. I was thinking of income between 200-350K, but that is a wide difference no doubt. Although, to keep it simple a 200k income and 350k mortgage is what I have in mind. I would like to see it raised to 50K really. If you don't have a complicated tax story and basically have wages and a 401K then raising it to 20K is still lower than the standard deduction for a married joint situation.
"During the 2016 presidential campaign, Republican candidate Donald Trump promised he would eliminate the nation’s debt in eight years.
 Instead, his budgets would add $8.3 trillion during that time. It would increase the U.S. debt to $28.5 trillion at the end of eight years, according to Trump's budget estimates.
Is that a joke? In most blue states, real estate tax plus state income tax EASILY exceeds $10,000/year for even modest income households. When I lived in IL, the real estate tax on my average neighborhood home was over $19,000/year. Then, add state income tax. (That's why I no longer live there. I live in a red state, now.)
That was my point. I'm not sure where this 15K number was coming from.
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To see what I'm talking about, consider the annual real estate bill on this modest home in Maywood (in Cook County, IL):
The fault in your proposal: Retirees move out of high-COL blue states to lower-taxed red states because that's all they can afford on their fixed incomes, and their federally-funded SS and Medicare benefits (a HUGE portion of US annual spending) follows them there.
That is another thing that requires overhaul. I think states should be able to subsidize their seniors. Property taxes frozen. Affordable senior communities. Of course, we do not have that up here in MA as far as housing goes, but I think needs to change and could change if we reorganized our government.
That was my point. I'm not sure where this 15K number was coming from.
That is corruption.
Still have to pay it, though, or lose your home (tax foreclosure).
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That is another thing that requires overhaul. I think states should be able to subsidize their seniors. Property taxes frozen. Affordable senior communities. Of course, we do not have that up here in MA as far as housing goes, but I think needs to change and could change if we reorganized our government.
Red states have that. That's why so many retirees move there. And their SS and Medicare benefits follow them there (both are a HUGE percentage of federal spending), creating the federal tax revenue vs. spending discrepancies so frequently cited.
Sorry for the confusion and I can see how my wording is off. I was thinking of income between 200-350K, but that is a wide difference no doubt. Although, to keep it simple a 200k income and 350k mortgage is what I have in mind. I would like to see it raised to 50K really. If you don't have a complicated tax story and basically have wages and a 401K then raising it to 20K is still lower than the standard deduction for a married joint situation.
It would depend on the amount of other deductions you have there if it is a net benefit. My initially numbers were slightly off and not for married. Is actually 24k for married. Without doing some calculations I would expect you would need around a 33k+ deduction (SALT + other - assuming you wouldn't be over standard without SALT) to not benefit from the lower federal tax rate in Massachusetts.
Taxes are on my mind as I just finished my taxes this morning and getting a small refund (1k~) with standard deduction. My refund next year will be fairly significant though due to some unique deductions and will not be taking standard deduction. I may lose a tiny amount out on being 1-2k over SALT deduction cap but it will still be much better than in 2017.
If you give me a number for total non SALT itemized deductions I would be happy to share what I estimate the difference to be pre and post trump tax cuts. Will assume 10% of 200k going into a 401k.
It would depend on the amount of other deductions you have there if it is a net benefit. My initially numbers were slightly off and not for married. Is actually 24k for married. Without doing some calculations I would expect you would need around a 33k+ deduction (SALT + other - assuming you wouldn't be over standard without SALT) to not benefit from the lower federal tax rate in Massachusetts.
Yes, you have that right. that is generally my situation. Salt + the exemptions kept me in a lower bracket. Now I end up paying a few thousand more when it's all done.
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Taxes are on my mind as I just finished my taxes this morning and getting a small refund (1k~) with standard deduction. My refund next year will be fairly significant though due to some unique deductions and will not be taking standard deduction. I may lose a tiny amount out on being 1-2k over SALT deduction cap but it will still be much better than in 2017.
If you give me a number for total non SALT itemized deductions I would be happy to share what I estimate the difference to be pre and post trump tax cuts. Will assume 10% of 200k going into a 401k.
Me too. I haven't done them yet. Tomorrow or Monday is the plan. I was hoping the second stimulus package would be passed with some SALT relief, but that's not happening.
Trumps tax cuts benefited 90% of americans.
Who did they hurt? High income earners for the two big powerhouse liberal states - New York and California. This is where the big money comes from in the Democrat party. The two states also have the most Billionares in the country. The SALT deduction cap ended up given people making in the 500k+ range a substantial tax increase.
The tax bill also removed exemption from some private university. Harvard being a prime example. These universities have endowments the size of a large hedge fund that were growing at ridiculous rates and not really being used for the benefit of students or researchers. Harvards first taxable bill last year was an estimated 50 million.
Repeal the Tax cuts and these two groups are by far the biggest winners while 90% of americans are the losers.
"During the 2016 presidential campaign, Republican candidate Donald Trump promised he would eliminate the nation’s debt in eight years.
 Instead, his budgets would add $8.3 trillion during that time. It would increase the U.S. debt to $28.5 trillion at the end of eight years, according to Trump's budget estimates.
It would be a heck of a lot more than 28.5, because it is already at 26.5 after 3.5 years. At this pace it will be 34.5 trillion if he is reelected.
Is that a joke? In most blue states, real estate tax plus state income tax EASILY exceeds $10,000/year for even modest income households. When I lived in IL, the real estate tax on my average neighborhood home was over $19,000/year. Then, add state income tax. (That's why I no longer live there. I live in a red state, now.)
I hope you didnt move to Texas to escape property taxes....
And the so called "middle class tax cuts" expire in 2025 the corporate tax cuts are permanent #KLEPTOCRACY
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