SALT Tax Deduction Increase

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

I own a home and I'm a democrat and I don't agree with raising the SALT cap. I agree with what the PP wrote about it being unbecoming and hypocritical for dems to scream about everyone needing to pay their fair share while requesting handouts from the federal government. If someone wants to buy a house, let alone a massive house, in a small geographical area where schools, police, fire, etc are subsidized by taxes then they need to pony up. SALT is regressive. Own your choices people.

+1

Huge, perfect, example of limousine liberals/champagne socialists. It’s very hypocritical and shows the massive disconnect from the rest of the country.

This whole “double taxation”argument doesn’t hold any water either, unless you think any sort of fee/tax paid with money you already earned should be railed against as “double taxation”. Sales tax, taxes added to your utility bill, car tabs and registration, etc etc. all of that is paid with money that has been taxed once already.

[Anonymous]

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

Eh. I’m a democrat and it is really becoming clear with the more money I make, that I am indeed being a pretty big hypocrite about my taxes in this way.

But I’ll always believe in the right to do whatever I want with my body and in the separation between church and state and that gays should be able to marry. That’s why I’ll always still be a democrat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What am I missing?

Standard deduction for married couples filing jointly is $27,700. Adding another $10K to current $10k is still below the standard deduction.

I guess the yay only applies if you are filing single/head of household.

Also, 2023 tax season is already here. Many of the tax softwares have already been coded to current tax laws. Why do they change tax laws so late in the game?

It helps if you are already itemizing. Fro example if you have $10k in current SALT deduction, $5k in charitable donations and $10k in mortgage interest you would be under the standard deductions dot just take that. But if SALT cap is raised to $20k you would be above and would itemize

Who has only $5K in charitable deductions but $10K in mortgage interest? I know this is hypothetical but these numbers are wacky unless you're lower income and house poor.

Our property taxes are 14K and rising fast -- Illinois is like that, there's no brakes. They've doubled in the last three years alone. It cuts into our ability to save and definitely our ability to donate, and it's not uncommon here.

You are paying for schools, fire, police, town rec programs, road plowing, trash hauling, fireworks, the beach if you are near Lake Michigan. You know all of this and undoubtedly you knew which towns had higher mill rates (that is what they are called in CT, not sure what they are called in IL) and you made a choice. My husband and I live outside of New York City and we chose to move to southern Connecticut (Fairfield County) instead of Long Island, New Jersey, and Westchester because, among other things, the taxes where we live are comparably lower and the schools are still great. Our town has a lot of businesses and that large tax base allows the town to offset property taxes. If we lived in Westchester or New Jersey I would probably be bummed about the high taxes but I would also own that I made a choice to move to that location knowing the taxes were very high.

It’s Illinois. They are paying for corrupt politicians, mismanaged pensions, and de facto segregated schools. Yes, those property taxes do fund local schools and suburban taxpayers do not want poor kids hands on it. Yay, let’s give those suburban whities a break for taking care of their own!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

I own a home and I'm a democrat and I don't agree with raising the SALT cap. I agree with what the PP wrote about it being unbecoming and hypocritical for dems to scream about everyone needing to pay their fair share while requesting handouts from the federal government. If someone wants to buy a house, let alone a massive house, in a small geographical area where schools, police, fire, etc are subsidized by taxes then they need to pony up. SALT is regressive. Own your choices people.

I agree with you in the abstract and on this policy (I also would benefit from raising or eliminating the SALT cap, but want to keep it in place because the SALT deduction is inherently regressive). But I will say, the fact that they put this otherwise good tax policy in place to cut the overall cost of a FAR more regressive tax cut law in 2017 does give me some sympathy for people on the hypocrisy charge. It's one thing to cap SALT deductions and use the additional revenue to bolster the safety net; it's another to cap SALT deductions and use the additional revenue to lower the corporate tax rate and cut taxes even more for people at higher incomes.

Also, one thing people keep ignoring: There are high-income renters who would still deduct massive amounts of state and local taxes if the cap were changed or removed. It's not just for property tax. My household paid more in D.C. income tax in 2022 than we did in property taxes, and also more than the $10,000 cap, so even if we didn't own a home, it still would have been regressive to let us write the whole local tax bill off.

[Anonymous]

So what’s the current status of this proposal after all these discussions?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

I own a home and I'm a democrat and I don't agree with raising the SALT cap. I agree with what the PP wrote about it being unbecoming and hypocritical for dems to scream about everyone needing to pay their fair share while requesting handouts from the federal government. If someone wants to buy a house, let alone a massive house, in a small geographical area where schools, police, fire, etc are subsidized by taxes then they need to pony up. SALT is regressive. Own your choices people.

I agree with you in the abstract and on this policy (I also would benefit from raising or eliminating the SALT cap, but want to keep it in place because the SALT deduction is inherently regressive). But I will say, the fact that they put this otherwise good tax policy in place to cut the overall cost of a FAR more regressive tax cut law in 2017 does give me some sympathy for people on the hypocrisy charge. It's one thing to cap SALT deductions and use the additional revenue to bolster the safety net; it's another to cap SALT deductions and use the additional revenue to lower the corporate tax rate and cut taxes even more for people at higher incomes.

Also, one thing people keep ignoring: There are high-income renters who would still deduct massive amounts of state and local taxes if the cap were changed or removed. It's not just for property tax. My household paid more in D.C. income tax in 2022 than we did in property taxes, and also more than the $10,000 cap, so even if we didn't own a home, it still would have been regressive to let us write the whole local tax bill off.

This is my issue with it exactly.

[Anonymous]

Anonymous wrote:So what’s the current status of this proposal after all these discussions?

Still dead!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

I own a home and I'm a democrat and I don't agree with raising the SALT cap. I agree with what the PP wrote about it being unbecoming and hypocritical for dems to scream about everyone needing to pay their fair share while requesting handouts from the federal government. If someone wants to buy a house, let alone a massive house, in a small geographical area where schools, police, fire, etc are subsidized by taxes then they need to pony up. SALT is regressive. Own your choices people.

I agree with you in the abstract and on this policy (I also would benefit from raising or eliminating the SALT cap, but want to keep it in place because the SALT deduction is inherently regressive). But I will say, the fact that they put this otherwise good tax policy in place to cut the overall cost of a FAR more regressive tax cut law in 2017 does give me some sympathy for people on the hypocrisy charge. It's one thing to cap SALT deductions and use the additional revenue to bolster the safety net; it's another to cap SALT deductions and use the additional revenue to lower the corporate tax rate and cut taxes even more for people at higher incomes.

Also, one thing people keep ignoring: There are high-income renters who would still deduct massive amounts of state and local taxes if the cap were changed or removed. It's not just for property tax. My household paid more in D.C. income tax in 2022 than we did in property taxes, and also more than the $10,000 cap, so even if we didn't own a home, it still would have been regressive to let us write the whole local tax bill off.

This is my issue with it exactly.

Yes, but it's still better tax policy than letting us take the full deduction, so even if they did it for malicious reasons and in pursuit of bad other policies, and even though I personally would benefit if they scrapped the cap, I don't really want them to undo it.

[Anonymous]

Any updates on this?

[Anonymous]

The SALT cap is a very progressive tax policy. I’m ok keeping it as it is.

[Anonymous]

I really dislike that it's the same cap for single and married people-- is there any other provision like that?-- but I can live with the idea of the cap, even if it was conceived by Trump to screw over blue states.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I’m sorry you can’t afford to buy a home.

I own a home and I'm a democrat and I don't agree with raising the SALT cap. I agree with what the PP wrote about it being unbecoming and hypocritical for dems to scream about everyone needing to pay their fair share while requesting handouts from the federal government. If someone wants to buy a house, let alone a massive house, in a small geographical area where schools, police, fire, etc are subsidized by taxes then they need to pony up. SALT is regressive. Own your choices people.

+1

Huge, perfect, example of limousine liberals/champagne socialists. It’s very hypocritical and shows the massive disconnect from the rest of the country.

This whole “double taxation”argument doesn’t hold any water either, unless you think any sort of fee/tax paid with money you already earned should be railed against as “double taxation”. Sales tax, taxes added to your utility bill, car tabs and registration, etc etc. all of that is paid with money that has been taxed once already.

They are double taxation any way you look at it but I understand sales tax. I will never get over taxes added to my utility bills. It shakes out to a 40% tax on your bill for something you need to live - water, electicity, gas. I don't think there should be taxes on utilities. For other consumer goods, absolutely.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What am I missing?

Standard deduction for married couples filing jointly is $27,700. Adding another $10K to current $10k is still below the standard deduction.

I guess the yay only applies if you are filing single/head of household.

Also, 2023 tax season is already here. Many of the tax softwares have already been coded to current tax laws. Why do they change tax laws so late in the game?

It helps if you are already itemizing. Fro example if you have $10k in current SALT deduction, $5k in charitable donations and $10k in mortgage interest you would be under the standard deductions dot just take that. But if SALT cap is raised to $20k you would be above and would itemize

Who has only $5K in charitable deductions but $10K in mortgage interest? I know this is hypothetical but these numbers are wacky unless you're lower income and house poor.

Uh, I have $12,000 in mortgage interest and $0 in charitable contributions. Charity is for rich people.

We run charity through a trust. Windfall years we made contributions even though disbursements to charities are consistent most years tax deduction is 0

[Anonymous]

Anonymous wrote:Any updates on this?

Shot down in the House a couple of weeks ago

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What am I missing?

Standard deduction for married couples filing jointly is $27,700. Adding another $10K to current $10k is still below the standard deduction.

I guess the yay only applies if you are filing single/head of household.

Also, 2023 tax season is already here. Many of the tax softwares have already been coded to current tax laws. Why do they change tax laws so late in the game?

It helps if you are already itemizing. Fro example if you have $10k in current SALT deduction, $5k in charitable donations and $10k in mortgage interest you would be under the standard deductions dot just take that. But if SALT cap is raised to $20k you would be above and would itemize

Who has only $5K in charitable deductions but $10K in mortgage interest? I know this is hypothetical but these numbers are wacky unless you're lower income and house poor.

Our property taxes are 14K and rising fast -- Illinois is like that, there's no brakes. They've doubled in the last three years alone. It cuts into our ability to save and definitely our ability to donate, and it's not uncommon here.

You are paying for schools, fire, police, town rec programs, road plowing, trash hauling, fireworks, the beach if you are near Lake Michigan. You know all of this and undoubtedly you knew which towns had higher mill rates (that is what they are called in CT, not sure what they are called in IL) and you made a choice. My husband and I live outside of New York City and we chose to move to southern Connecticut (Fairfield County) instead of Long Island, New Jersey, and Westchester because, among other things, the taxes where we live are comparably lower and the schools are still great. Our town has a lot of businesses and that large tax base allows the town to offset property taxes. If we lived in Westchester or New Jersey I would probably be bummed about the high taxes but I would also own that I made a choice to move to that location knowing the taxes were very high.

It’s Illinois. They are paying for corrupt politicians, mismanaged pensions, and de facto segregated schools. Yes, those property taxes do fund local schools and suburban taxpayers do not want poor kids hands on it. Yay, let’s give those suburban whities a break for taking care of their own!

It’s a lot of this in high tax blue states. Misconception that the high taxes go to services unless you consider massive pension liabilities to be a service.