Reply to SALT Tax Deduction Increase

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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?[/quote]

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[/quote]

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.[/quote]

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. [/quote]

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.[/quote]

It’s Illinois. [b]They are paying for corrupt politicians, mismanaged pensions[/b], 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![/quote]

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. [/quote]

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