Reply to Trump flip flops on SALT Tax Deduction

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]
The SALT deduction has an income cap.[/quote]

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).[/quote]

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  [/quote]

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. [/quote]

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. [/quote]

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