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Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

nytimes.com

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Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#21

Post by putlake »

mmanfrin wrote: post #5

I'm a highish earning single homeowner in Alameda County (Bay Area) -- between the Mortgage Interest deduction, the Property Tax deduction, and the State Income Tax deduction being slated for removal, my taxable income is about to go up something like $60k, which is a large chunk of my actual income. This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing c…

Instead of selling, if you move out and rent out your house, the rent you collect will only be taxed at a max rate of 25%. The federal income tax rate on passive income from S-corporations (which are pass through entities) maxes out at 25%.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#22

Post by mmanfrin »

vkou wrote: post #8
mmanfrin wrote: post #5

I'm a highish earning single homeowner in Alameda County (Bay Area) -- between the Mortgage Interest deduction, the Property Tax deduction, and the State Income Tax deduction being slated for removal, my taxable income is about to go up something like $60k, which is a large chunk of my actual income. This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing c…

> I cannot see this bill as anything short of theft. Why do I have to pay double-digit percentage more on my taxes to give the ultra rich a tax cut? In what fucking world does that make any economic sense. My rent isn't tax deductible. Why is yours blessed with such a status (In the form of a mortgage, and property tax deduction)? All that mortgage tax deductions do, economically, is increase the overall price of hom…

Mortgage interest and property taxes are costs on top of the actual cost of the house. My mortgage itself isn't tax deductible.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#23

Post by jartelt »

Overall this bill seems really, really bad and poorly implemented (and costly). But as a renter in the bay area, I do like that increasing the standard deduction and reducing some of the other popular deductions will decrease the large tax break homeowners have been receiving. In my opinion we have been treating renters unfairly by letting homeowners deduct so much mortgage interest, property taxes, etc. We already incentivize home ownership by offering government backed 30-year mortgages. We don't need to use the tax code as well.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#24

Post by TheAdamAndChe »

mmanfrin wrote: post #5

I'm a highish earning single homeowner in Alameda County (Bay Area) -- between the Mortgage Interest deduction, the Property Tax deduction, and the State Income Tax deduction being slated for removal, my taxable income is about to go up something like $60k, which is a large chunk of my actual income. This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing c…

When the federal government gives high tax states tax cuts, that means those areas give less to the federal government, meaning those generally rich states end up getting federally subsidized by the poorer states.

How does _that_ make sense? Shouldn't the richer areas help pay for the poor? Why not do something about the high taxes in your state instead?

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#25

Post by berberous »

mmanfrin wrote: post #5

I'm a highish earning single homeowner in Alameda County (Bay Area) -- between the Mortgage Interest deduction, the Property Tax deduction, and the State Income Tax deduction being slated for removal, my taxable income is about to go up something like $60k, which is a large chunk of my actual income. This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing c…

Any chance you'd be willing to, roughly, show your work? I'm curious to see if your calcs are accurate and how you are getting to that number. Understand if you prefer not to. Thanks.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#26

Post by whitehouse3 »

davexunit wrote: post #10
lettergram wrote: post #3

This doesn't really make sense to me. So it appears that the tax bill generally is reducing the tax code and closing loop-holes (which typically is considered "good" to the left, and the right). In this case, it looks like the tax reductions are reduced in states that have higher taxes. Well that makes sense, because the states with lower taxes have less to write off (as they have 0% in some cases). Of course Texas w…

This is possibly the worst interpretation of the tax bill I have seen yet, maybe excluding Mitch McConnell's ludicrous statement that the bill is either deficit neutral or reduces the deficit.

Maybe elaborate? Disparagement without correction doesn’t help other readers.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#27

Post by ghouse »

lettergram wrote: post #3

This doesn't really make sense to me. So it appears that the tax bill generally is reducing the tax code and closing loop-holes (which typically is considered "good" to the left, and the right). In this case, it looks like the tax reductions are reduced in states that have higher taxes. Well that makes sense, because the states with lower taxes have less to write off (as they have 0% in some cases). Of course Texas w…

I'm not aware of any person who lives in the US who has 0% (of state and local taxes which include income, payroll, property, and sales) Can you provide examples?

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#28

Post by refurb »

I love how the articles make it look like Democrats are more likely to be hit by higher taxes. Yes, those states where taxes are going up are majority democrat, but the split isn't that far off from 50/50. Plenty of wealthy Republicans will be paying more tax too.

Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers

#30

Post by froindt »

vkou wrote: post #8
mmanfrin wrote: post #5

I'm a highish earning single homeowner in Alameda County (Bay Area) -- between the Mortgage Interest deduction, the Property Tax deduction, and the State Income Tax deduction being slated for removal, my taxable income is about to go up something like $60k, which is a large chunk of my actual income. This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing c…

> I cannot see this bill as anything short of theft. Why do I have to pay double-digit percentage more on my taxes to give the ultra rich a tax cut? In what fucking world does that make any economic sense. My rent isn't tax deductible. Why is yours blessed with such a status (In the form of a mortgage, and property tax deduction)? All that mortgage tax deductions do, economically, is increase the overall price of hom…

FWIW, only the interest is deductible, not the entire payment.

I agree with the sentiment though. The realtors have arguably the most effective lobbying efforts, and to be able to tie their industry in with the "American Dream" has been very effective.

I was out in DC earlier this year speaking with my congressional representatives about some changes to the bankruptcy code. We were working with a lobbyist who said something along the lines of "everybody knows when the realtors are in town. Nobody tries to get meetings that week because they have such a great mobilization effort, everyone gets booked up."

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