Weird thing is I got my home loan at such a low interest rate, that I won't even come out ahead itemizing. My house is well above the national median price and I do better using the standard deduction, so I can't be alone. Homeowners need to consider this come tax time; if you did a refi you could be in a spot where just ignoring all that interest paid makes financial sense. Of course it takes away a big incentive for us all in not being able to take the deduction of gambling losses to the extent of gambling wins, but that is another day and another argument.
How is it a BS provision? You've always been able to deduct state income tax; now you're being given a choice of deducting either income or sales tax. Some states, as mentioned above, don't have income tax. Others don't have sales tax. For those having to pay both state and federal income taxes, this is a very useful measure that does not have a meaningful effect on revenue, since much federal revenue is simply redistributed back to the states (whether as direct subsidy, or in the form of federal expenditures on infrastructure and other localised projects.)
How is it BS? What am I missing?
Phaedrus
How is it BS? What am I missing?
Phaedrus
lander
How does it help states without income tax? I guess it helps people who live in those states, since they have never had the same deduction as people who live in states that do have income tax. I don't mean to be daft, but I'm seriously not following your logic? How is allowing taxpayers to deduct sales tax an unfair boon to states without income tax?
Phaedrus
How does it help states without income tax? I guess it helps people who live in those states, since they have never had the same deduction as people who live in states that do have income tax. I don't mean to be daft, but I'm seriously not following your logic? How is allowing taxpayers to deduct sales tax an unfair boon to states without income tax?
Phaedrus
Phaedrus,
Those PEOPLE in those states never had the "deduction" because they weren't getting double income taxed to begin with (state and federal). This isn't brain surgery sir.
The tax reform will equate to "bend over blue states" by the time dum dum and his gang of federal assclowns get finished.
Those PEOPLE in those states never had the "deduction" because they weren't getting double income taxed to begin with (state and federal). This isn't brain surgery sir.
The tax reform will equate to "bend over blue states" by the time dum dum and his gang of federal assclowns get finished.
So?lander said:
The old way seems more unfair:
Somone in state A pays $1000 in sales tax and $0 in state income tax. This person got double taxed on $1000.
Someone in state B pays $500 in sales tax and $500 in state income tax. This person "only" got double taxed on $500.
The new way will level the field. Thanks for the heads up on this.
I take it you guys have never been to an advanced state (see blue states).
My sales tax is more than Florida's and I have the 2nd highest state income tax rate. Maybe NY just blows, but hearing this nonsense about "leveling the field" couldn't be farther from the truth.
My sales tax is more than Florida's and I have the 2nd highest state income tax rate. Maybe NY just blows, but hearing this nonsense about "leveling the field" couldn't be farther from the truth.
You're right. I've never had to pay a state income tax. I have no idea how much people pay in other states.
I would guess though that your state provides more govt services or is horribly innefecient with its money. Boo hoo. Either way, your problem. Why shoud you get to write off your state taxes and not me.
I would guess though that your state provides more govt services or is horribly innefecient with its money. Boo hoo. Either way, your problem. Why shoud you get to write off your state taxes and not me.
lander, if you've ever read anything I've posted you know I'm all for writing it all off and just getting rid of all taxes at all levels. However, in the real world this will not happen, so I welcome what seems to me to be a very positive thing.
Here's my logic:
1) The situation to date has been, you deduct your state income tax when filing your federal taxes.
2) Under the new changes, you can choose between deducting your sales taxes and your income taxes.
3) The middle class generally has to pay sales tax and income tax, often both at the state level, plus having to pay federal income taxes. The poor pay no income taxes, and the rich don't care about sales tax generally since it is usually a lot less than they're paying in other forms of tax. So the big benefit here goes to the middle class, especially those living in high tax areas (like, for example, New York, one of the worst.)
It's win-win. Hell, I would think as a resident and taxpayer in one of the highest-tax areas in the country, who also gets back substantially less in tax revenue than you spend out as a state, you would welcome the idea that New Yorkers can now possibly send a little less to DC and keep it in New York.
Phaedrus
Here's my logic:
1) The situation to date has been, you deduct your state income tax when filing your federal taxes.
2) Under the new changes, you can choose between deducting your sales taxes and your income taxes.
3) The middle class generally has to pay sales tax and income tax, often both at the state level, plus having to pay federal income taxes. The poor pay no income taxes, and the rich don't care about sales tax generally since it is usually a lot less than they're paying in other forms of tax. So the big benefit here goes to the middle class, especially those living in high tax areas (like, for example, New York, one of the worst.)
It's win-win. Hell, I would think as a resident and taxpayer in one of the highest-tax areas in the country, who also gets back substantially less in tax revenue than you spend out as a state, you would welcome the idea that New Yorkers can now possibly send a little less to DC and keep it in New York.
Phaedrus
Phaedrus,
I suppose the difference here is that you're an optimist. You see the glass as half full now ... I still see if as a half assed job done by crooks in DC.
Either way, I do not agree that this is an improvement for most of us, but debating you guys isn't going to erradicate the provision.
Happy holidays fellas. I'm doing my best to be American and indulge in capitalism driven by the commercialization of religions celebrations. Geez .. and GameFarce has the nerve to call me anti-American
Blessings fellas (not that an agnostic believes in them)
I suppose the difference here is that you're an optimist. You see the glass as half full now ... I still see if as a half assed job done by crooks in DC.
Either way, I do not agree that this is an improvement for most of us, but debating you guys isn't going to erradicate the provision.
Happy holidays fellas. I'm doing my best to be American and indulge in capitalism driven by the commercialization of religions celebrations. Geez .. and GameFarce has the nerve to call me anti-American
Blessings fellas (not that an agnostic believes in them)
