SALT Tax Deduction Increase

[Anonymous]

Im so tired of homeowners and all their endless tax breaks. Homeowners want it all and become NIMBYs. We need to get rid of the SALT deduction, scale back mortgage interest deductions, and start incentivizing multi family housing and renters.

[Anonymous]

Anonymous wrote:Im so tired of homeowners and all their endless tax breaks. Homeowners want it all and become NIMBYs. We need to get rid of the SALT deduction, scale back mortgage interest deductions, and start incentivizing multi family housing and renters.

Why would you incentivize renting?

[Anonymous]

I thought they were just going to get a vote on the SALT increase not that it was being folded into the larger tax bill right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Im so tired of homeowners and all their endless tax breaks. Homeowners want it all and become NIMBYs. We need to get rid of the SALT deduction, scale back mortgage interest deductions, and start incentivizing multi family housing and renters.

Why would you incentivize renting?

You want to encourage movement in the housing market, instead of people sitting on their sub 3% rates complaining how they're golden handcuffed and can't move. If it was more attractive to rent, you also wouldn't have so much local resistance to creating more housing stock. More supply = better prices for all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Im so tired of homeowners and all their endless tax breaks. Homeowners want it all and become NIMBYs. We need to get rid of the SALT deduction, scale back mortgage interest deductions, and start incentivizing multi family housing and renters.

Why would you incentivize renting?

You want to encourage movement in the housing market, instead of people sitting on their sub 3% rates complaining how they're golden handcuffed and can't move. If it was more attractive to rent, you also wouldn't have so much local resistance to creating more housing stock. More supply = better prices for all.

This doesn’t make sense. There’s no social good in having movement in the housing market. People who own homes are more likely to live somewhere long term and invest in the community. People who are just passing through aren’t interested in improving schools, parks, etc because they won’t be around to enjoy them.

[Anonymous]

I believe there is a way to improve schools & parks that don't rely on a people being subsidized by tax breaks to own their homes.

[Anonymous]

Anonymous wrote:I believe there is a way to improve schools & parks that don't rely on a people being subsidized by tax breaks to own their homes.

That is a different statement than the poster above who said we should incentivize transient renters so no one will push back on new developments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I believe there is a way to improve schools & parks that don't rely on a people being subsidized by tax breaks to own their homes.

That is a different statement than the poster above who said we should incentivize transient renters so no one will push back on new developments.

They are working on their messaging.

[Anonymous]

Being taxed on money you are paying to tax sucks. Do I think I need to pay taxes? Yes! Do I think I should be taxed on money that I owe to someone else? No! That’s why the SALT cap sucks. I’ll always have to pay my property tax. I shouldn’t have to pay the feds on money I don’t ever see.

[Anonymous]

It’s not going to pass, and it would be bad policy, anyway. The SALT deduction (which I also could claim more than the cap for, if the cap were raised or eliminated) is absurdly regressive. It sucks to pay more in taxes, but there’s no reason those of us who earn enough to have more to deduct than the standard deduction need more breaks.

[Anonymous]

Anonymous wrote:It hilarious how liberals and Dems scream about the rich not paying enough taxes and about rampant wealth inequality, yet here they are, demanding the U.S. govt and the rest of the country help subsidize their expensive giant homes with tax deductions.

There should be $0 able to be deducted for owning a home. Why is it my responsibility to give you a tax break for owning a $1M home? Dems, walk the walk if you’re gonna talk the talk. Fork up the taxes since you are telling everyone else to pay more to combat wealth inequality.

This doesn't make any sense. The govt should incentivize what it hopes to encourage...people having kids, people buying homes, saving for retirement, etc.

[Anonymous]

Anonymous wrote:It’s not going to pass, and it would be bad policy, anyway. The SALT deduction (which I also could claim more than the cap for, if the cap were raised or eliminated) is absurdly regressive. It sucks to pay more in taxes, but there’s no reason those of us who earn enough to have more to deduct than the standard deduction need more breaks.

Except that if you put it in an LLC then it's a business deduction. In effect it's a tax targeted at upper middle class urban professional families. It's horrible politics and horrible policy because it promotes a race to the bottom and transience while incentivizing renting over individual ownership.

[Anonymous]

When are they voting?

[Anonymous]

Anonymous wrote:When do you guys think this will take effect IF passed? We are ready to file taxes and this $10k increase would impact our itemized return.

It is retroactive to 2023. Don't file yet. If you have already filed (which would be stupid under the circumstances) and this becomes law, file an amended return.

For someone in the 32 percent bracket, this potentially represents a tax savings of $3,200.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When do you guys think this will take effect IF passed? We are ready to file taxes and this $10k increase would impact our itemized return.

It is retroactive to 2023. Don't file yet. If you have already filed (which would be stupid under the circumstances) and this becomes law, file an amended return.

For someone in the 32 percent bracket, this potentially represents a tax savings of $3,200.

When is it being voted on?