Political Wrinkles  

Go Back   Political Wrinkles > Political Forums > Economics
Register FAQDonate PW Store PW Trivia Members List Calendar Search Today's Posts Mark Forums Read

Economics Discuss SALT tax deduction: 11 million taxpayers taking a hit from new tax law at the Political Forums; Taxpayers are struggling to understand whether they're coming out ahead or losing out under the new tax laws. But there's ...

Reply
 
Share LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 02-27-2019, 09:45 PM
saltwn's Avatar
PW Enlightenment
 
Join Date: Oct 2007
Location: Esto perpetua
Posts: 80,094
Thanks: 55,065
Thanked 26,116 Times in 18,661 Posts
Send a message via AIM to saltwn Send a message via MSN to saltwn Send a message via Yahoo to saltwn
Default SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Taxpayers are struggling to understand whether they're coming out ahead or losing out under the new tax laws. But there's one group that's losing out to the tune of $323 billion: Taxpayers who live in high-tax states like New York and California.

Almost 11 million taxpayers are likely to feel the pinch of a new cap on deducting state and local taxes, also known as SALT deductions. Before President Donald Trump signed the Tax Cuts and Jobs Act into law, taxpayers could deduct all their state and local taxes from their federal returns. But the new law capped those deductions at $10,000 -- a rule that was meant to find new revenue to pay for the law's generous tax cuts to corporations and the wealthy.

That is now turning into a financial pinch for homeowners and taxpayers whose property taxes and state income taxes add up to more than $10,000. In an audit issued Tuesday, the Treasury Department estimated the SALT cap will likely impact 10.9 million taxpayers by examining how many 2017 returns claimed these deductions above that cap. Those taxpayers wouldn't be able to deduct $323 billion in state and local taxes, Treasury said. Each year, about 153 million taxpayers file returns.
Quote:
"The people who are in a high tax state like New York, California, Connecticut and New Jersey and so on are missing out because of the limitation on SALT tax deductions capped at $10,000," said Harvey Bezozi, a CPA and the founder of YourFinancialWizard.com in Boca Raton, Florida.
And states like Idaho and Oregon.

The name SALT puts me in mind of the later monarchs of France just before the last revolution when the crown owned the salt mines and made you purchase a certain amount of salt per year then raised the tax on it to extremes.

If you are paying on a mortgage you probably got back less this year and maybe you owe.


Quote:
To be sure, it doesn't mean that all 11 million taxpayers hit by the SALT deduction cap will pay higher tax bills. In some cases, these taxpayers may offset the lower SALT deduction through other tax law changes, such as a higher standard deduction and lower tax brackets.

But those who are hit are likely to live in mostly Democratic-leaning states such as California and New York, where state income and property taxes tend to be higher than the national average. They're also likely to be wealthier, according to the Tax Foundation. In 2016, almost 80 percent of the full SALT deduction had gone to Americans with incomes of more than $100,000, the Tax Foundation said. About 6.6 percent of the benefit went to taxpayers who earned less than $50,000, it added.
Not all of em, buddy not all of em Arizona also has state income tax
__________________
Trump posted the wrong approval numbers and says wind turbines cause cancer. If brains were black powder, the guy couldn't blow his nose.
_ Stephen King
Reply With Quote
  #2 (permalink)  
Old 02-28-2019, 08:10 AM
PW Enlightenment
 
Join Date: Apr 2013
Gender: Male
Posts: 11,807
Thanks: 9,327
Thanked 7,612 Times in 4,570 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by saltwn View Post
And states like Idaho and Oregon.

The name SALT puts me in mind of the later monarchs of France just before the last revolution when the crown owned the salt mines and made you purchase a certain amount of salt per year then raised the tax on it to extremes.

If you are paying on a mortgage you probably got back less this year and maybe you owe.




Not all of em, buddy not all of em Arizona also has state income tax
So basically the problem is the feds are no longer subsidizing high tax states high taxes at the expense of the more fiscally conservative states. As a resident of a relatively low taxed state and county, I don't have a problem with that. It seems the anger is misdirected. High tax states residents should rallying outside the offices of the state leaders. Demand taxes get cut.
Reply With Quote
The Following 6 Users Say Thank You to jimbo For This Useful Post:
  #3 (permalink)  
Old 02-28-2019, 08:39 AM
GottaGo's Avatar
Sanity is overrated.
 
Join Date: Aug 2009
Location: Miles to go before I sleep
Posts: 12,513
Thanks: 10,323
Thanked 8,551 Times in 5,402 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by saltwn View Post
And states like Idaho and Oregon.

The name SALT puts me in mind of the later monarchs of France just before the last revolution when the crown owned the salt mines and made you purchase a certain amount of salt per year then raised the tax on it to extremes.

If you are paying on a mortgage you probably got back less this year and maybe you owe.

Not all of em, buddy not all of em Arizona also has state income tax
But, to throw their own words back at them, they should be paying their fair share. Why should the rest of us have to subsidize those who choose to live in a high tax state?

For some, apparently 'fair shar' is only applicable to those who make more than them.
__________________
Your life is the sum total of the choices you make.
If you don't laugh at yourself, a whole bunch of people will volunteer to do it for you
I never lose. I either win, or I learn....
Reply With Quote
The Following 4 Users Say Thank You to GottaGo For This Useful Post:
  #4 (permalink)  
Old 02-28-2019, 09:02 AM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 17,035
Thanks: 10,179
Thanked 10,703 Times in 6,471 Posts
Send a message via ICQ to AZRWinger
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by saltwn View Post
And states like Idaho and Oregon.

The name SALT puts me in mind of the later monarchs of France just before the last revolution when the crown owned the salt mines and made you purchase a certain amount of salt per year then raised the tax on it to extremes.

If you are paying on a mortgage you probably got back less this year and maybe you owe.




Not all of em, buddy not all of em Arizona also has state income tax
Democrats have created high tax burdens directly on locals and indirectly on taxpayers nationwide with the unlimited SALT deduction. Taxpayers in states that practiced fiscal constraint were penalized by having to pay more in Federal taxes.

It's not French kings taxing salt, it is high tax Democrat controlled states for the most part having to pay their fair share of Federal taxes. Nothing drives a Democrat more looney than the realization of having to live by their own rhetoric.

The SALT deduction cap only comes into play on household incomes of around $100,000 in high tax states. That's about 140% of the median national household income. Democrats strutted about signaling their own virtue with expanded Medicaid which increased eligibility to 140% of the poverty line. Taxing high incomes in high tax states controlled by Democrats is bad but burdening taxpayers nationwide to pay for expanded Medicaid is virtuous.

The SALT deduction and the home mortgage deduction are two separate items. The Federal income tax reform reduces the home mortgage interest deduction to the first $750K in mortgage debt. That has no impact on the SALT deduction cap. Unless you live in one of the ultra high cost mostly Democrat controlled areas of the country with real estate prices inflated by costly regulations, you will probably be unaffected.
__________________
What is a 30 something year old single man with a rock in one hand and a Honduran flag in the other?

An asylum seeker.
Reply With Quote
  #5 (permalink)  
Old 02-28-2019, 11:16 AM
PW Enlightenment
 
Join Date: Apr 2013
Gender: Male
Posts: 11,807
Thanks: 9,327
Thanked 7,612 Times in 4,570 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by AZRWinger View Post
Democrats have created high tax burdens directly on locals and indirectly on taxpayers nationwide with the unlimited SALT deduction. Taxpayers in states that practiced fiscal constraint were penalized by having to pay more in Federal taxes.

It's not French kings taxing salt, it is high tax Democrat controlled states for the most part having to pay their fair share of Federal taxes. Nothing drives a Democrat more looney than the realization of having to live by their own rhetoric.

The SALT deduction cap only comes into play on household incomes of around $100,000 in high tax states. That's about 140% of the median national household income. Democrats strutted about signaling their own virtue with expanded Medicaid which increased eligibility to 140% of the poverty line. Taxing high incomes in high tax states controlled by Democrats is bad but burdening taxpayers nationwide to pay for expanded Medicaid is virtuous.

The SALT deduction and the home mortgage deduction are two separate items. The Federal income tax reform reduces the home mortgage interest deduction to the first $750K in mortgage debt. That has no impact on the SALT deduction cap. Unless you live in one of the ultra high cost mostly Democrat controlled areas of the country with real estate prices inflated by costly regulations, you will probably be unaffected.
I do fairly well. I live in a large home in one of the best neighborhoods in the area. I've never had a state or local tax burden in excess of $10,000. I wouldn't live where I did.
Reply With Quote
  #6 (permalink)  
Old 02-28-2019, 01:46 PM
jamesrage's Avatar
Scholar
 
Join Date: Jan 2008
Location: A place where common sense still exist.
Gender: Male
Posts: 2,316
Thanks: 1,167
Thanked 1,370 Times in 858 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by saltwn View Post
And states like Idaho and Oregon.

The name SALT puts me in mind of the later monarchs of France just before the last revolution when the crown owned the salt mines and made you purchase a certain amount of salt per year then raised the tax on it to extremes.

If you are paying on a mortgage you probably got back less this year and maybe you owe.




Not all of em, buddy not all of em Arizona also has state income tax
People shouldn't be allowed to deduct their state taxes from their federal taxes at all.Now these people can actually enjoy the consequences of their high taxes.
__________________
"There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag… We have room for but one language here, and that is the English language… and we have room for but one sole loyalty and that is a loyalty to the American people.”—Theodore Roosevelt
Reply With Quote
  #7 (permalink)  
Old 02-28-2019, 03:06 PM
GottaGo's Avatar
Sanity is overrated.
 
Join Date: Aug 2009
Location: Miles to go before I sleep
Posts: 12,513
Thanks: 10,323
Thanked 8,551 Times in 5,402 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by jamesrage View Post
People shouldn't be allowed to deduct their state taxes from their federal taxes at all.Now these people can actually enjoy the consequences of their high taxes.
Something that was brought to my attention, and me thinks may be quite applicable, is that now people will actually feel the bite of a State's tax, they may suddenly say, why is this State's tax so high? For those where the light bulb goes on, hopefully they will start to understand.

One can only hope....
__________________
Your life is the sum total of the choices you make.
If you don't laugh at yourself, a whole bunch of people will volunteer to do it for you
I never lose. I either win, or I learn....
Reply With Quote
The Following User Says Thank You to GottaGo For This Useful Post:
  #8 (permalink)  
Old 02-28-2019, 03:53 PM
cnredd's Avatar
Administrator
 
Join Date: Oct 2007
Location: Philadelphia
Gender: Male
Posts: 54,221
Thanks: 2,160
Thanked 33,985 Times in 19,689 Posts
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by GottaGo View Post
Something that was brought to my attention, and me thinks may be quite applicable, is that now people will actually feel the bite of a State's tax, they may suddenly say, why is this State's tax so high? For those where the light bulb goes on, hopefully they will start to understand.

One can only hope....
That's where I'm at...

This reminds me of ObamaCare, where all these colleges and organizations were FOR it, and then complained when they were ADDED to it...

LIBERAL HARVARD FACULTY UPSET BY RISING HEALTH INSURANCE COSTS DUE TO OBAMACARE

Millennials on Obamacare: what do you mean, affordable?
__________________
"You get the respect that you give" - cnredd
Reply With Quote
The Following 2 Users Say Thank You to cnredd For This Useful Post:
  #9 (permalink)  
Old 03-01-2019, 01:08 AM
saltwn's Avatar
PW Enlightenment
 
Join Date: Oct 2007
Location: Esto perpetua
Posts: 80,094
Thanks: 55,065
Thanked 26,116 Times in 18,661 Posts
Send a message via AIM to saltwn Send a message via MSN to saltwn Send a message via Yahoo to saltwn
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by jimbo View Post
So basically the problem is the feds are no longer subsidizing high tax states high taxes at the expense of the more fiscally conservative states. As a resident of a relatively low taxed state and county, I don't have a problem with that. It seems the anger is misdirected. High tax states residents should rallying outside the offices of the state leaders. Demand taxes get cut.
Idaho
__________________
Trump posted the wrong approval numbers and says wind turbines cause cancer. If brains were black powder, the guy couldn't blow his nose.
_ Stephen King
Reply With Quote
  #10 (permalink)  
Old 03-01-2019, 01:10 AM
saltwn's Avatar
PW Enlightenment
 
Join Date: Oct 2007
Location: Esto perpetua
Posts: 80,094
Thanks: 55,065
Thanked 26,116 Times in 18,661 Posts
Send a message via AIM to saltwn Send a message via MSN to saltwn Send a message via Yahoo to saltwn
Default Re: SALT tax deduction: 11 million taxpayers taking a hit from new tax law

Quote:
Originally Posted by GottaGo View Post
But, to throw their own words back at them, they should be paying their fair share. Why should the rest of us have to subsidize those who choose to live in a high tax state?

For some, apparently 'fair shar' is only applicable to those who make more than them.
states have to have a way to pay for things or would you rather they borrowed money every year from the federal government? You wouldn't be talking out your arse if you lived in one of these states.
__________________
Trump posted the wrong approval numbers and says wind turbines cause cancer. If brains were black powder, the guy couldn't blow his nose.
_ Stephen King
Reply With Quote
Reply

Tags
deduction, from, hit, law, million, new, salt, taking, tax, taxpayers

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Forum Jump


All times are GMT -5. The time now is 05:47 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.

Content Relevant URLs by vBSEO 3.2.0