ThumbsUp

Exactly. It’s irrelevant in the context that matters. Two people making the same amount of money should not have to subsidize the actions of another’s locally elected policies.

If you want to live in CA, that’s fine, but your share of the federal taxes shouldn’t be reduced because you chose to do so.

Andy

Yes, because they have higher income. With SALT, they're not paying their FAIR SHARE. SALT deductions need to be limited so that the wealthy pay their FAIR SHARE.
At least those are the words that Joe Biden's been using ... paying your FAIR SHARE.

hummingbear

This is nothing that approaches an intelligent discussion on the topic. There are a small handful of states that claim over half the annual SALT deductions. These states combined also account for around 40% of the total US economy. (Ironically, while these states are disproportionately blue, TX is among them.) While there is certainly a point at which SALT deductions are merely sheltering individuals wealthy enough to comfortably pay more in federal taxes, where exactly that point lies is far from objective. Determining the line that separates enabling bloated state governments & supporting the localities that power a large portion of our national economy is even harder to do.

The reality is that D’s spend more than they bring in & R’s bring in less than they spend. Very little difference in the end result, but it does expose the fact that most Americans are far less concerned with fiscal sustainability than they are with laying blame on the other side.

herewego

The realities of tax deductions are that it is the lower paid workers who are subsidizing the higher paid.
I as a lowly 24% tax bracket regional pilot in a low tax state end up needing to pay more federal income taxes while the 37% mainline pilot writes off his/her high state taxes and receives that 37% back from the feds.
how much tax money has been lost to Scientology from the likes of Tom Cruise and
John Travolta charitable donations. When Romney was running for president he reported tithing $4.1M to his church, costing the rest of us over $800,000. But that figure is only that low because tax laws are written by lobbyists and congressional aides who make sure his income is treated different than our income so his tax rate is only 20% instead of what should be 37%

iahflyr

Increasing the SALT deduction cap from 10k to 80k for 5 years and then lowering the SALT deduction allowed from unlimited to 80k for the following 5 years costs nothing. It restores the SALT deduction for middle and upper middle class earners, and caps it in the following years for the ultra wealthy.

I used to be a Republican. I cared about low taxes, states rights, and no double taxation. Then the GOP introduced the SALT cap deduction in 2017 that raised my taxes and caused double taxation for me. Guess who I have not voted for since…

herewego

Keep believing that broken record about this is helping the middle class and upper middle class. If your SALT deduction is more than the median household income you are living in a totally different world than even the upper middle class.
I see you modified your argument to use the term Ultra wealthy in justifying this giveaway, pandering to the elites, and reverse transfer of wealth.
I guess you fell for the giveaway mentality of "you give me something and I'll vote for you."

AxlF16

I live in NC (hardly a 'high tax state') and am definitely affected by the 10k cap. I also have reasonable property tax rates.

TFAYD

of course - a ton of people are affected by it. You can easily push 200K on FO pay. 5% state income tax is middle of the road and gets you to the 10K cap. Add 10K for real estate taxes - also not uncommon for a modest 3 BR home and you are squarely in the range.

and that easily doubles if you live in a high tax state.

ThumbsUp

That just highlights the difference in what seems reasonable to one is unreasonable to another . Lifting the 10k cap only matters if the combined deductions are in excess of 24k without that cap. For the vast majority of people aside from the wealthy in high SALT states, even being able to claim more than 10k in SALT won’t have an impact.

Most people here who own a home, earn enough to where they will see some reduction in their taxes with a lifting of the SALT cap, but the degree will vary wildly based on where you live. In my reasonable tax state, I’d see a sub $50 reduction in my overall tax bill. If I lived in any of the hubs, I’d be looking at a 5-figure break.

Inclined plane

Naw he does. Insecure much?


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