Skip to comments.FACT CHECK: New Yorkers Will Get Tax Cuts Even Without the State and Local Tax Deduction
Posted on 12/06/2017 2:19:53 AM PST by JayGalt
The Republican tax overhaul will not be the punishment expected by many residents of high-tax, Democrat-voting areas. Many of those who have the most to lose from the elimination of state and local tax deductions will actually come out ahead under either the House or Senate versions of the bills.
Many residents of places like New York City, which couple high taxes with high costs, fear the provisions of both bills that would eliminate or reduce the deductions they receive for the income and property taxes they pay locally. The Senate bill would preserve a property tax deduction up to $10,000.
The New York Times recently published an alarming story about the loss of the deduction, describing it as a dagger aimed at New York City and its neighbors. But closer scrutiny reveals that this is overwrought. Although some New Yorkers might lose under the GOP tax bill, many would win.
Under current law, a taxpayer with $500,000 of income and $30,000 in annual mortgage interest payments on a $1 million home, would face a tax bill of around $130,000 after the deduction for state and local taxes. The House bill would see this shrink to around $123,000. The Senate bill would shrink this to around $112,000.
(Excerpt) Read more at breitbart.com ...
>> mortgage interest payments
BS against the barn door...
State and property taxes in excess of the new doubled deduction are hit.
Don’t be a blowhard claiming the blue states fail to pay their fair share.
There are millions of hard working, single renters in NYC and across the country who have always taken the standard deduction. It’s about time they got a little break.
Are you forgetting that the tax RATES were reduced?
I’m upstate and have a mortgage. My husband was starting to lose it a little with all the publicity about how bad it was going to be for New Yorkers but when I used the online calculators it showed our taxes would decrease under both Senate & House plans.
Crappy article undoubtedly fed to Carney by some congressional lackeys.
Middle-class NYers are between someone making $75K and swinging a home and the $500K+ crowd that Jivanka wrote their massive expansion of the 529 plan into k-12 private schools for.
I don’t care what, if anything, I get back. I live in NYS. Own a home. SALT deductions still need to go.
If New Yorkers learned how to NOT pay for Elliot Spizter’s whores, they can learn to NOT pay for many other things their state and local politicians are doing to them.
I'm cheering this on from the People's Republic of New Jersey (According to the tax foundation, we're #3! Just behind New York and Connecticut. Pennsylvania and Delaware -- just across the river -- are #15 and #16, respectively. Not great but not awful, either. I'd like to see states compete for the #50 spot.)
The SALT deduction supports the most fiscally irresponsible politicians buying votes in the most fiscally irresponsible states.
Over the long term, it's best for the country to have a level playing field.
Put some clove oil on them raw nerves....
I dont care what, if anything, I get back. I live in NYS. Own a home. SALT deductions still need to go.
TY both for being the level-heads needed around here.
Govt got the expected outcome they desired: squabbling\class warfare...don’t look behind the curtain at Fedzilla that’s stealing & spending everyone into oblivion.
Question for all you tax junkies. My wife and I have been filing jointly for 28 years. In year 29, can we file separately?
I thought liberals wanted the “rich” to pay more?
So...which is the LIE?
Retirees with a sizable property tax bill (CA, NY, TX, FL, etc.) along with out-of-pocket medical expenses (to include premiums) and possibly some mortgage interest will very likely see less starting next year.
All the rich except themselves.
If the Republicans were SMART, they’d have the IRS tell each taxpayer what they paid in their 2017 taxes, and what they will pay in 2018, based on whatever law is signed-in. It would just take a few lines of code.
Unfortunately the Republicans are TOO STUPID to do that, as they are TOO STUPID to realize that the timing of this bill is a TICKING BOMB for them, especially as the media is portraying it. Here’s the scenario:
1) Bill passes, and the media (and sadly some here) keep preaching that this is not a real tax cut and by the time they’re done, virtually everyone expects their taxes to go up, even though only about 5% of people will see an increase (if that).
2) People are mad at the Republicans for “Increasing their Taxes” and they help sweep the Democrats into office next November...instead of holding the Senate Republican.
3) 3 months later, they do their taxes and say, “Wow, we were lied to, we’re saving THOUSANDS thanks to Trump and the Republicans”.
4) But too late - Trump is no longer able to seat a SINGLE JUDGE at the appellate or Supreme Court level...due to the Democrat blockade against him. The courts will be gone with the next Democrat president.
...and it all could have been prevented, by a few lines of code and a couple of sentences from the IRS.
As far as I know, you can file separately...but it’s difficult to see how you’d come out ahead, at least when I’ve glanced at it. I suspect that the option is for other reasons...
I used the tax calculator and my taxes go up substantially.
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