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I think it should FINALLY be a wake up call to the majority/middle-working class people to boycott these two garbage parties. Aren't you getting tired of bailing out Rich Elites and Welfare Queens already?
Why?
Republicans: reduced the SALT deduction and make it more reasonable.
Democrats: increase the SALT deduction and continue to suck on the low tax states.
Please be sure to thank your beloved Democrats for this. You are funding their high tax blue states!!!
Trump did a great thing. The SALT should be zero, to be frank.
To be frank, you state taxes should be higher than your federal taxes since the majority of your government services are provided by your state and local government.
The SALT cap is probably a much bigger factor in the exodus from states like California and New York than anyone is admitting out loud. It’s one thing to have ridiculously high state taxes when it doesn’t impact your total tax bill and totally different when it actually results in you paying out extra money. Our move back to Kentucky is saving us almost $500 a month in taxes. Them changing the SALT cap will only very slightly save us money now and the bulk of America will be blind to it because their SALT is well under the $10,000 cap, but for some it is a substantial tax break and makes whatever supposed tax increases on the rich a zero sum game instead of them “pay their fair share”. It is probably one of the reasons Democrats had been trying to avoid sending the Build Back Better bill to the CBO - and don’t think Manchin doesn’t know this is going to show up on that report.
I've seen more California plates per month in the last few months here in the Houston metro than I have since I moved here from California, and that was in the late 00s.
Sorry but I’m not providing anymore info other than my taxes went up by 6K. And I’m not complaining about it either. My taxes have done nothing but go up year over year for 4 decades regardless of the party in the Oval. I expect it, I plan for it, I adjust my earnings and spending accordingly. But I also not particularly sympathetic to those who did get a tax cut and may lose some of it. Easy come, easy go.
so, you weren't complaining at all, and you think either a) the SALT cap should stay $10K or b) no SALT deduction.
See, I'da sworn there was a "Trump!!11!!!" swipe in there. Sorry to be confused.
My taxes went up because I lost out on ~ $2K of SALT. But knowing that
a. even more people had $0 tax liability - yay the working poor/lower middle class!
b. even fewer people had to spend hours getting pissed at the tax forms - yay higher standard deduction and people taking it!
c. the super-rich didn't get to write off multiple expensive properties in expensive locations
The bottom 50% (little guy) pay only 3% of all federal income taxes collected in 2018, & the trend has the top 50% paying increasingly more that the Little Guy.
Agreed, fully. However, that wasn't really the question asked. SALT cap is not the only way to target taxes at folks who make $400K+/year. In fact, it's not a particularly good way, even.
Agree?
If I live in Fort Mill, SC and work in downtown Charlotte at one of the big banks making $500K a year. Changes to SALT deductions, in either direction, won't touch me. Hell, if I lived in a penthouse in The Vue in downtown Charlotte, the SALT deductions probably wouldn't make much difference to me. I'm betting a lot of folks across the country would fall into the same scenario to some degree.
as someone noted - it's a simple way, and a great way to tax the "rich", unless what you're saying is you want to change their behavior and their top-line income somehow.
Just imagine - by cutting the MID going forward to "only" $750K from $1MM, you're getting an extra $3K or so from the "rich".
Adjust the 10k SALT cap for inflation. That should be an easy compromise. Anything more than that means most of the benefit goes to the rich.
Possibly, to bolded.
If you raised it so that of the 7% that took a SALT hit was 3.5% or less (the minority), then less than 1/2 the benefit would go to the rich. Right?
Ex: There's 11,000,000 people who topped $10,000. If you increase to $15K, then 700K of them fall within the cap. So those 700K got full-deductibility of their entire SALT. The other 400K "only" got another $5K deducted.
The sticky part is the 700K are probably in the 22% - 24% bracket, while the 400K are definitely in the 32+% bracket. So, "technically" those 400 get a slightly bigger break on the $5K extra deduction. But it would be way too complex to get that # perfect.
You are taking my stance wrong. I'm well aware that the successful pay the brunt of this countries taxes. I could care less that they get breaks. I'm just flagging that this administration stated that the successful will be paying for this spending bill...I'm willing to bet, in the end it will be falling on the middle class...something they said would not.
"I'm willing to bet, in the end it will be falling on the middle class...something they said would not."
I disagree.
Inflation hits EVERYBODY.
Those with "money" buy MORE, spend more, therefore it will hit them the hardest.IMO.
as someone noted - it's a simple way, and a great way to tax the "rich"...
No, it simply isn't. There are tons of not "rich" people that live in high SALT locations. It's actually a pretty crappy way to tax the "rich". It does nothing to address "rich" people in lower SALT locations and it increases the burden on non-"rich" people in high SALT locations.
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