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SALT allows your hard earned money to stay local to you. It funds municipalities and states rather than a federal government that is too large. I know liberals want a large central government that collects more in taxes and spends even more.
However, as a conservative, I want a smaller federal government and to leave it up to the states on how tax dollars are collected and spent. In an ideal world, the federal tax rate would be low and that would be it. But that's not the case, so the SALT deduction allowed states to be empowered.
No, the SALT deduction allows some states to force those from lower-taxed states to subsidize their high taxes. Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
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If we want to fix this, we need to lower the federal tax rate and scrap all federal tax deduction altogether... including the SALT deduction. A cap at $10k simply favors a certain subset of people over others... and it has nothing to do with being wealthy or not.
And why should Blue States tax dollars subsidize red states operating budgets, 9 of the top 10 are red states who live off of federal tax dollars paid by others...https://www.moneygeek.com/living/sta...al-government/
So you wanna move military bases in NM and AK to NJ and DE?
To determine the return on taxes sent to the Federal Government, MoneyGeek utilized reporting by the IRS to identify the amount of taxes paid by the residents and businesses of each state for individual income tax, business income tax, estate and gift taxes, unemployment insurance taxes, and excise taxes. MoneyGeek then identified data from the Treasury Department on payments from the Federal Government to individuals and organizations within each state and calculated the monetary benefit provided by the Federal Government to each state relative to the amount of taxes provided by each state (Medicare payments were removed from this calculation as this information was consolidated to a handful of states). This metric was given a 3x weighting and converted to a 100-point scale for inclusion in the final score.
No, the SALT deduction allows some states to force those from lower-taxed states to subsidize their high taxes. Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
No, the SALT deduction allows some states to force those from lower-taxed states to subsidize their high taxes. Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
This is a myth that people too easily believe and use to push a political agenda. NJ and TX both pay more than their fair share in taxes to the fed. States like AL, KY, MS and many others are subsidized by the taxes paid by states like NJ.
I'm not sure why you and other liberals are for larger federal government, rather than keeping the money closer to you where states and municipalities could be empowered.
So you wanna move military bases in NM and AK to NJ and DE?
To determine the return on taxes sent to the Federal Government, MoneyGeek utilized reporting by the IRS to identify the amount of taxes paid by the residents and businesses of each state for individual income tax, business income tax, estate and gift taxes, unemployment insurance taxes, and excise taxes. MoneyGeek then identified data from the Treasury Department on payments from the Federal Government to individuals and organizations within each state and calculated the monetary benefit provided by the Federal Government to each state relative to the amount of taxes provided by each state (Medicare payments were removed from this calculation as this information was consolidated to a handful of states). This metric was given a 3x weighting and converted to a 100-point scale for inclusion in the final score.
NJ has the highest real estate taxes PLUS it has a state income tax rate of up to 10.75%. TX is ranked behind NJ, IL, NH, CT, VT, WI, and who knows how many other states, and has no state income tax.
This is a myth that people too easily believe and use to push a political agenda. NJ and TX both pay more than their fair share in taxes to the fed.
You didn't answer the question... Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
You didn't answer the question... Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
Someone in NJ pays on average $9,902 in federal taxes while someone in TX pays on average $6,437 in federal taxes. People in NJ already pay more than their fair share... that's why.
A better question is why do liberals believe that more money should go to the federal government rather than keeping it closer to the state?
Someone in NJ pays on average $9,902 in federal taxes while someone in TX pays on average $6,437 in federal taxes. People in NJ already pay more than their fair share... that's why.
We're not talking about the average taxpayer. We're talking about the top 20% of whom 96% exceed the current $10,000 SALT tax deduction limit. Why should a taxpayer in NJ (has a state income tax plus high real estate tax rates) get a sizeable SALT tax deduction while a similar taxpayer in TX (no state income tax and lower real estate tax than NJ) does not?
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