Trump flip flops on SALT Tax Deduction

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Yep, would be huge for us as well

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

If the Trump tax cut had not been renewed there would be not limit. The senate will kill this. So do not count on salt limits increase.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Uh, you make north of ~$400K per year if you’re in the 32% bracket. I make $100K per year as a single person. Why on earth should we be giving you a tax cut? If you can’t figure out how to pay for your kids’ college without a further tax cut, what hope is there for the rest of us?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

If the Trump tax cut had not been renewed there would be not limit. The senate will kill this. So do not count on salt limits increase.

You’ll have a rude awakening when inflation goes up as the debt from this bill is monetized to avoid default. The people who are marginally helped by this bill will be marginally hurt by higher inflation (poor people will suffer the most, of course) which will make borrowing harder and will eat into real wages. You won’t be putting away $9K or $12K for college in actuality. You’ll be using that money to pay for all the things you pay for right now that will cost more. And let’s not forget that people are getting kicked off medicare, so try not to take too much joy while you celebrate this Pyrrhic victory.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Yes, it’s a lot of money, but like me, it sounds like you don’t need it, especially since you paid nearly twice as much federal income tax as I did last year (meaning significantly more income) and gave less than half as much to charity. None of us earning more than $300,000 a year need tax subsidies from the rest of the country.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Uh, you make north of ~$400K per year if you’re in the 32% bracket. I make $100K per year as a single person. Why on earth should we be giving you a tax cut? If you can’t figure out how to pay for your kids’ college without a further tax cut, what hope is there for the rest of us?

Why should we be giving you a tax break who can’t even find a job that pays better than you’re currently making? Who exactly is “deserving” of a tax break?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Uh, you make north of ~$400K per year if you’re in the 32% bracket. I make $100K per year as a single person. Why on earth should we be giving you a tax cut? If you can’t figure out how to pay for your kids’ college without a further tax cut, what hope is there for the rest of us?

Taxes should be flat 18% across all incomes

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Uh, you make north of ~$400K per year if you’re in the 32% bracket. I make $100K per year as a single person. Why on earth should we be giving you a tax cut? If you can’t figure out how to pay for your kids’ college without a further tax cut, what hope is there for the rest of us?

Taxes should be flat 18% across all incomes

Ross Perot just showed up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

Uh, you make north of ~$400K per year if you’re in the 32% bracket. I make $100K per year as a single person. Why on earth should we be giving you a tax cut? If you can’t figure out how to pay for your kids’ college without a further tax cut, what hope is there for the rest of us?

Taxes should be flat 18% across all incomes

Also, Steve Forbes. Ross was right about everything, including the giant sucking sound from NAFTA.

Ross Perot just showed up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

If the Trump tax cut had not been renewed there would be not limit. The senate will kill this. So do not count on salt limits increase.

You’ll have a rude awakening when inflation goes up as the debt from this bill is monetized to avoid default. The people who are marginally helped by this bill will be marginally hurt by higher inflation (poor people will suffer the most, of course) which will make borrowing harder and will eat into real wages. You won’t be putting away $9K or $12K for college in actuality. You’ll be using that money to pay for all the things you pay for right now that will cost more. And let’s not forget that people are getting kicked off medicare, so try not to take too much joy while you celebrate this Pyrrhic victory.

Not a problem. I’ll buy Swiss franks and keep them under the mattress when that time comes. I lived in Argentina: I know how the movie goes

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

If the Trump tax cut had not been renewed there would be not limit. The senate will kill this. So do not count on salt limits increase.

You’ll have a rude awakening when inflation goes up as the debt from this bill is monetized to avoid default. The people who are marginally helped by this bill will be marginally hurt by higher inflation (poor people will suffer the most, of course) which will make borrowing harder and will eat into real wages. You won’t be putting away $9K or $12K for college in actuality. You’ll be using that money to pay for all the things you pay for right now that will cost more. And let’s not forget that people are getting kicked off medicare, so try not to take too much joy while you celebrate this Pyrrhic victory.

The salt “cut” is not making it through the senate. It will be eliminated. That will increase taxes on the middle class to a tune of 1.2 trillion. The rich pay an effective tax rate of 10%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

Agree with this. Deductions should be for activity related to producing income, or encouraging some broad social goal, e.g., family formation. Having relatively high state income taxes satisfies neither of these. So no SALT deduction, period.

It's as if you paid zero attention to US history in high school - the 10th Amendment, the balance between federalism and states' rights, redistribution of federal tax intakes (ie. "fiscal union"), etc. These are the reasons why are had full deductibility of SALT for 160 years of American history.

Not surprising your eyes glazed over all of this in 11th grade.

We had slavery for hundreds of years, doesn’t make right to keep it.

If this so fundamental, why didn’t Biden fix it ? He had an all Dem congress for the first two years. And apparently, would have gotten R support from Blue states to revise the tax law. I guess he slept through the same class.

Or maybe, it’s just not right to demand a tax deduction because your state government is inefficient with high taxes for expensive programs. And even Sleepy Joe knew this.

High tax states are high tax because of public pensions. That’s really all it comes down to.

It seems like they also generate more revenue for the federal government as well.

That’s a slippery slope. My husband lives in CT and works in NY. My company is based out of CA and I live in CT. CT isn’t generating anything in our scenario. We just happened to choose CT because - you guessed it - taxes in CT were lower than in NY or NJ. My husband has a four hour round trip commute from where we live (the most southern town in CT) to the Financial District where he works. If everyone whining about SALT moved two hours away from their job their taxes would probably be lower too, but instead people bombard DCUM of how they are at their breaking point after a week of commuting 45 minutes each way. Maybe recognize that you made a trade off and live with your decision instead of constantly complaining about how you are being victimized. This entire conversation is just beyond. All of these liberal people complaining about how they want a regressive tax policy back and how modifying SALT in 2017 violated their constitutional rights.

I’m PP, bringing SALT back would probably net me less than $1000 so it’s not like I have much to gain.

I’m just ticked about the Paul Ryan narrative that bringing SALT back is “red states” are subsidizing “blue states” when it was really the other way around from the beginning, even with the SALT deduction.

moving from 10K to 40K means I can deduct 35K instead of 10K. Love it.

Damn, you are just so ignorant! Standard deduction is 29K already!

$40K SALT + $20K in mortgage interest + $5K in charitable donations = $65K in itemized deductions

That easily swamps a $30K standard deduction for MFJ.

Just to put a point on this. We are 32% tax bracket in DC, have $20K in mortgage interest and $5K in charitable donations.

Current federal tax paid with $10K SALT: $85,932
Federal tax paid with $40K SALT: $76,804

Tax Savings: $9128

That's basically a year of colleges savings for one of our kids. That's huge.

I should also add that the higher SALT amount will also likely have the effect of dropping you into a lower tax bracket. $40K SALT moves us from 32% bracket to 24% bracket for our highest marginal dollars (assuming current brackets remain static).

so those are marginal $$$ anyways not sure why it's that important with that level of income. The absolute $$$ amount must be minimal

$10K -> $40K SALT is a $9K savings in federal taxes for us and also a $12K increase in our take home (because the itemized deductions lower AGI and that flows through to state taxes).

I want to live in your world where $12K in my pocket is a "minimal" "absolute $$$ amount".

If the Trump tax cut had not been renewed there would be not limit. The senate will kill this. So do not count on salt limits increase.

You’ll have a rude awakening when inflation goes up as the debt from this bill is monetized to avoid default. The people who are marginally helped by this bill will be marginally hurt by higher inflation (poor people will suffer the most, of course) which will make borrowing harder and will eat into real wages. You won’t be putting away $9K or $12K for college in actuality. You’ll be using that money to pay for all the things you pay for right now that will cost more. And let’s not forget that people are getting kicked off medicare, so try not to take too much joy while you celebrate this Pyrrhic victory.

The salt “cut” is not making it through the senate. It will be eliminated. That will increase taxes on the middle class to a tune of 1.2 trillion. The rich pay an effective tax rate of 10%.

I think at a bare miniumn they need to get rid of marriage penalty. Singles getting 10K and married couples getting 10K is silly. At least make it fair with 20K for married couples.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who pays more than $10,000 in SALT each year and itemizes deductions, let me join the other people in this thread who would be better off if this policy changed but still recognize that letting people who make more money find additional tax shelters is unfair.

They should leave the cap as it is or ban deduction of state taxes outright, and they should also stop subsidizing my mortgage with that deduction, while they're at it.

The SALT deduction has an income cap.

The deduction itself has a cap. And only people with high incomes pay enough in taxes to need the higher deduction (or to itemize their deductions).

But I make way under 400K and pay high state taxes. People forget RMDs are gigantic many retired people. My math has me at $3 million by retirement in 401k that will be $113,370 in RMDs. By then with inflation I will pay 24k in property taxes and my wife wants to get a little beach condo that might be 6k property tax.

I live in Maryalnd so will have over 40K salt in retirement even though middle class. By 75 when RMDS happen with 50 years compounding nearly everyone in 2030s will have 7 figure 401ks

I think if you’re retiring with $3 million and a little beach condo, you probably will be able to afford to pay the marginal additional taxes that you’d owe from not being able to deduct your full $30k in property taxes.

Most likely even lower middle class people will retire with 3 million soon as 401K limits keep rising combined with a rising stock market.

A 63 year old married to a 61 year old for instance can put in $34,750 each this year That is $69,500. And that is before match or stock gains. Someone who is middle class but not kids done with college and mortgage paid off could do this type of supersize deposits and lets say they did it just 55-67 it be massive by 75 when RMDs happen.

And IRAs lets not forget. Even people who just roll CDs in IRA with Interest Rates high they are piling up.

[Anonymous]

I see no logic to the SALT deduction. Why should some one get to pay less federal taxes because they elect to live in a high local tax jurisdiction?

It encourages wasteful spending and high taxes at the local level.