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  1. #1
    Join Date
    May 2006
    Location
    NWFL
    Posts
    12,510

    Default New Trump tax proposal removes deduction for state taxes

    Below are the most controversial parts. All of this is subject to change as the bill goes through the house and senate. I do not pay state income tax in FL. Since I am retired I am not sure how I will be impacted.
    The tax plan eliminates itemized deductions except for those on charitable contributions, mortgage interest, property taxes, and retirement savings. Current mortgage-holders aren't affected.

    But for new mortgages, it only allows the deduction up to $500,000. That will affect home buyers in large cities, where most houses cost more than $500,000.
    It also means no deductions for medical expenses. Currently, people can deduct medical expenses that are 10 percent or more of income.
    It eliminates the deduction for state and local taxes.
    One who hammers his gun into a plow plows for those who do not....Unknown
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  2. #2
    Join Date
    Apr 2009
    Posts
    2,074
    Technically, this isn't "Trump's plan". The GOP committee in the House drafted this.

    The State and Local tax deduction repeal is controversial. High tax states have benefited from this for years. However, it really only impacts those who itemize. With the standard deduction being doubled, even those in high tax states are less likely to be negatively impacted. They did reinstate the Property Tax deduction, but capped it at $10K.

    The challenge for the GOP is whether they can get enough high tax (think Blue State) votes to pass the bill. I think they might be able to squeeze it through the House, not sure they can pull it off in the Senate.

    Tax Reform is in no way a done deal. The GOP has shown themselves somewhat inept at passing important legislation (ObamaCare repeal comes to mind).

    The market is betting on the GOP succeeding, but if anyone can screw this up, it's the GOP, especially in the Senate with a group of 3-4 RINOs that could easily deep six this.
    In order for the underprivileged and inept to feel adequate, the skilled and capable must be made stupid by decree.

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  3. #3
    Join Date
    Mar 2011
    Posts
    526
    It would put some pressures on states with high taxes. People would look twice on that state tax bill when it is not deductible. Ditto on cities with income taxes.
    "Stupidity is thinking you can continually outvote an endless stream of third world socialists"

  4. #4
    Join Date
    Nov 2012
    Location
    Central Texas
    Posts
    383
    Yeah. I have mixed feelings about that state income tax deduction. I understand why people want it but it has always seemed to me that those High Tax states (that are mostly liberal by the way) are just stealing from the federal government in order to fund their own budgets.

    I would much prefer they get rid of all deductions except charitable and decrease the tax brackets for everyone with the minimum of bracket of 5% for everyone.

  5. #5
    Join Date
    Aug 2011
    Location
    AZ & CA
    Posts
    353
    I pay state taxes in CA and AZ. I don't care what Trump does, he's my prez!
    “How much can you know about yourself, if you've never been in a fight?

    - Tyler Durden


  6. #6
    Join Date
    May 2011
    Posts
    172
    Not seeing a problem . People in high tax states are writing it off and the Feds are paying it . Democrat states and localities are being funded by the rest of the country . Eliminate the cover and MAKE them eat it . When the people paying the bills start asking where the money is going , the CommieLibs are doomed . They will lose big at election time and hopefully some will be prosecuted . This is just about the best way to destroy them - expose the fraud and corruption and enforce the law.

  7. #7
    Join Date
    Aug 2010
    Posts
    1,994
    No one and I mean no one should get a tax return after paying zero dollars in to the system. If they do the books and you get a return larger than what you paid in, that's buying votes. We're all in this canoe together, if you're not rowing GTF out.
    If you are getting hosed and are possibly one of the people in the "Middle Class" who will now pay more, you might want to ask yourself "why?". Go pay a couple hundred bucks and get some serious advice about how to handle your issues.
    Some people win and some people don't the key to winning with your money is to stay informed. Fat, dumb and broke is no way to go through life. Get a budget.

  8. #8
    Join Date
    Mar 2011
    Posts
    526
    Quote Originally Posted by Averageman View Post
    No one and I mean no one should get a tax return after paying zero dollars in to the system. If they do the books and you get a return larger than what you paid in, that's buying votes. We're all in this canoe together, if you're not rowing GTF out.
    If you are getting hosed and are possibly one of the people in the "Middle Class" who will now pay more, you might want to ask yourself "why?". Go pay a couple hundred bucks and get some serious advice about how to handle your issues.
    Some people win and some people don't the key to winning with your money is to stay informed. Fat, dumb and broke is no way to go through life. Get a budget.
    Ah, you are talking about the Earned Income Credit. You earn it by having more kids than you can support and IRS gives you 2-3 grand a year of OPM. Vote buying at its best, popular with immigrants who have large families. And don't forget the parasite army of CPAs and tax preparers who suck the people dry with complicated income tax returns.

    To go you one nastier, I really think that tax deductions for kids should only be for legitimate ones. Why subsidize somebody else's mistakes?
    "Stupidity is thinking you can continually outvote an endless stream of third world socialists"

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