So people making over 200K a year will pay more taxes, cry me a river.
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Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
41–50 of 275 posts
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#42First, this article would've been much better off using medians instead of means. High earner outliers tend to skew stats like these.
Second, it's interesting to see people who were in favor of tax increases suddenly change their mind when it hits them. While I agree that tax cuts for the rich seem unnecessary, some tax hikes for the upper middle-class aren't out of line compared with a Democrat led tax plan. I wonder how much our own personal interests in our money affects how we view tax plans? Most people, no matter how rich they are, seem to want those just richer than them to be taxed more.
Finally, although the removal of the SALT deduction will cost me significantly, I'm not sure I understand how the deduction makes sense. Why should a state raising their taxes mean you have less of a federal obligation? It only makes sense to me if states with higher taxes use less federal resources.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#43I'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'm approaching from the opposite situation - I have a paid off house in my lower cost of living state and am relocating to the Bay Area for a job next month. I will not be selling my current home, nor buying in the Bay Area, until the fallout of this tax bill is known. At the very least, housing prices may come down where I'm going, but likely not where I'm moving from (since the mortgage interest deduction on most homes around here will wash out with the doubling of the standard deduction, but even if it does, it's percentages of far smaller numbers comparatively). Meanwhile, it sounds like nothing's changing in what I'll be able to deduct as a landlord. At least, that's my thought.
That said, it's always been a little odd to me that we could deduct our mortgage interest and property taxes, but a renter cannot even though they're paying a good portion of that on our behalf.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#44I'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…
Who are the ultra-rich getting a tax cut?
I'm under the impression that it's the corporations getting the biggest big tax cut in this bill -- so possibly your employer.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#45This 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 agree with davexunit. Your analysis is flawed. First, you characterize state and local income and property tax deductions as "loop-holes." That's an interesting bit of logical acrobatics. In reality, the Senate bill hardly closes any loop-holes, and creates a myriad of new ones. For example, the whole pass-through craziness.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#46I'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…
Disclaimer: This bill adversely affects me as well, and I'm not in favor of it, but:
>This tax bill utterly fucks me, to the point I'm considering selling my house to get ahead of the inevitable housing crash.
Can you imagine any type of reasonable tax reform that would not cause someone's tax to go up? Just the fact that some folks' taxes will go up does not make it a poor plan.
If your deductions are about $60K, then whether you feel like it or not, you are rich. And most tax overhauls would likely tax wealthier people more. This bill is a bit problematic as it taxes people in the upper middle class the most - whereas the rest of the lower/middle class and upper class get a break.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#47I'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
Welcome to libertarianism ;)
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#48I'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…
The government was subsidizing your lifestyle -- owning an expensive house in a state with a high income tax. It does not want to do this anymore. It makes as much economic sense as other subsidies do.
Props for figuring out that taxation is theft though. Maybe next time don't vote for state government with highest state income tax in US?
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#49I'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 went to an open house in SF Saturday. The realtor had been planning to list the house in February but the seller is so worried about the tax situation they put it on the market and want it sold ASAP.
Re: Among the Tax Bill’s Biggest Losers: High-Income, Blue State Taxpayers
#50I'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…
California is the insane state with created the taxes. The government is trying to simplify the tax code, that means you should be able to say: "I'm taxed at 15%, and that means out of $100k you get $85k take home" Not all the deductions. I'm not really, for or against this bill. I used to live in Alameda, CA and thought the taxes were insane. The bag tax, the income tax, the property tax, literally if you didn't hav…
Simplification is a red herring (notice how corporate state taxes are still deductible). Republicans needed a pay-for for reducing corporate/passthrough taxes and eliminating the estate tax. It just so happens that high wage earners in high tax states tend to be Democrats.