Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The way that Trump lowered the SALT deductions it raised taxes on the wealthy. People in the lower income groups didn't see their taxes rise by a penny.
The deductions for SALT was capped at 10K. Most middle class people aren't paying a total of $10K in SALT taxes.
The bulk of the taxes overwhelmingly fell on the $500K household crowds.
Why should the federal government subsidize the federal income taxes for wealthy people in states that have higher taxes?
That’s simply not true. In much of the north east, a modest home in a lower middle class neighborhood will have property taxes over $10k per year.
65% of households that make $500,000 a year or more are represented by Democrats.
This puts Biden in a catch 22. He has promised to raise taxes on the rich, but Democrats want to increase SALT (state and local tax) deductions from federal income taxes to benefit their rich supporters. Meanwhile Republicans want to keep the SALT deductions at their lower rates pit in place by Trump.
Trump's change in SALT rules made it so lower income groups weren't impacted at all and the brunt fell on the 1%.
The SALT deductions favor the 1% and it is a weird position where Republicans are asking to keep taxes higher on the rich and Democrats are asking to lower taxes on the 1%.
Mainstream Democrats like Pelosi argue that these tax breaks for the rich help states and localities charge more in their own taxes while many rich have moved to lower tax states. Republicans argue that the national government shouldn't subsidize state and local taxes with tax breaks for the rich.
AOC to her credit has sided with Republicans and has questioned the hypocrisy of those who on one hand demand the rich pay their fair share, but in the next moment demand tax breaks for the rich.
Surprisingly, if the Democrats get their way this tax reduction will create a bigger divide in racial income. Asians at the top will keep more and the white black gap that Democrats speak on so much will widen further.
Biden is faced with essentially lowering federal taxes to compesate for citizens overtaxed by blue states.
Screw them. Fix your own damn state and stay out of my pocket.
When the cheapest house is $1 million and you are starting a family and need a place to live; you will figure out a way to buy that $1 million home.
.
no. Earning $150K (what's required to afford a $600K mortgage, assuming you've held the house a few years), puts you in the top 10% nationally. That's not middle class.
In NYC the median income is 107K. The top 20% is still $150K (as indicated above), and top 20% is not "middle class"
The SALT stuff was pretty targeted to hurt Democrats. I think thats a issue with it. It wasn't a "is this good or bad" it was "this will hurt Democrats". which is no way to run a country.
SALT deduction does not just favor the 1%, it favors those living in higher cost of living blue states.
.
It doesn't help "high cost of living blue states"-it helps high tax blue states. Blue state residents want the "benefits" of big government and the services those high local and state taxes are supposed to pay for. They just want residents of other states to pay for them-they don't want to do so themselves. SALT deductions force the poor and lower middle class to provide for the rich and upper middle class.
Here's a simple idea. You want high state and local taxes-that's fine. YOU pay for them. Don't expect others to do so.
If you don't think middle class in blue states are paying more than $10k in SALT taxes, you need to come out here and see.
A starter home in San Francisco cost upward of $1 million, and I'm talking the most basic smallish home in a ok but not great neighborhood.
.
That's a California regulation problem jacking up the cost of everything - which was Trump's point. If California wants to have an insane amount of regulations that raises the costs - why should I in Texas subsidize that nonsense?
It's ridiculous for a regular home to cost that much.
Quote:
Originally Posted by greywar
The SALT stuff was pretty targeted to hurt Democrats. I think thats a issue with it. It wasn't a "is this good or bad" it was "this will hurt Democrats". which is no way to run a country.
No - it meant to say the country shouldn't compensate for states who over-regulate and over-tax. For some reason, Democrats fit in to that category. They are free to make life more affordable, but choose not to. That's their problem.
no. Earning $150K (what's required to afford a $600K mortgage, assuming you've held the house a few years), puts you in the top 10% nationally. That's not middle class.
In NYC the median income is 107K. The top 20% is still $150K (as indicated above), and top 20% is not "middle class"
Using your one size fits all standard, there are maybe a total of a few hundred poor people in the entire state of CA.
Studies show that middle class in San Francisco is $192k or under.
People will argue, "Oh, but CA is different!!" Doesn't matter. Someone in Burma would say your $50k salary makes you mega rich. Sure, in their eyes; but in reality you're still middle class where you are.
It's not about the middle class... it's about the federal government subsidizing states with outrageously high taxes.
By turning this into a class issue, it misses the point. States need to reduce their tax rates - and it's fully within their control to do so.
We never link the pains of the middle class and require states to change. Why not?
The SALT issue didn't stop Albany from hiking taxes on everyone in their most recent budget.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
