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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

#71

Post by davidjnelson »

jartelt wrote: post #23

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 i…

If the cost of housing in the bay area goes down due to this, that could be a good outcome depending on your situation.

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

#72

Post by dmode »

nostromo wrote: post #12

I don't see why state taxes should be federally deductible to begin with. Two families both make $250,000 a year. One is in New York and one is in Texas. The family in Texas is carrying more of the federal tax burden than the family in New York. Why? Both are (in theory) receiving the same benefits from the Federal Government and should pay the same in taxes. If you're a progressive this should make even less sense:…

You can make the same argument about every single deduction. Texas family makes large donations to Christian churches. Why does a secular family in blue state subsidize that deduction ? Texas has higher property taxes ? Why does a California family with low property taxes subsidize that ? Texas did not expand Medicaid. Which means an average citizen can have higher medical spending ? Why does another state with expanded Medicaid subsidize that deduction ? I can keep going on the myriad of all other deductions. Out of all these, there is a reason only SALT was chosen to be eliminated. It is not some equalizer of burden. It is a political deduction.

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

#73

Post by dragonwriter »

koolba wrote: post #36
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…

The counter argument is, why should the rest of the country and generally lower income tax payers be subsidizing the high State taxes, high property taxes, and higher mortgage deductions on your expensive homes? If you want to lower your State tax bill then lobby your State representatives. If you want to lower your property taxes then lobby your local officials. Or vote with your feet and move somewhere that doesn’t…

> The counter argument is, why should the rest of the country and generally lower income tax payers be subsidizing the high State taxes, high property taxes, and higher mortgage deductions on your expensive homes?

They aren't. The high tax states generally are net contributors to the federal treasury, the low tax states are generally net drains.

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

#74

Post by 52804375092485 »

refurb wrote: post #14
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…

People have been clamoring for more taxes on the rich. Well, this is what it looks like. Oh wait! You didn't think you were rich, right?

But... this tax bill dramatically _lowers_ taxes on people who make a lot more money or have a lot more assets. So sure, this guy is rich relative to an unemployed coal miner. But you're being a little disingenuous by implying that this guy is remotely close to "the rich" who people commonly think of raising taxes on, and doubly so in implying that people who want higher taxes want them for everyone but themselves. I would gladly pay more in exchange for better services and safety nets.

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

#75

Post by dv_dt »

nostromo wrote: post #12

I don't see why state taxes should be federally deductible to begin with. Two families both make $250,000 a year. One is in New York and one is in Texas. The family in Texas is carrying more of the federal tax burden than the family in New York. Why? Both are (in theory) receiving the same benefits from the Federal Government and should pay the same in taxes. If you're a progressive this should make even less sense:…

You have a very wrong assumption there. Those blue states were already paying more in federal taxes than they were taking in spending. Families in red states already carried less federal tax burden...

This is all a crazy moot discussion anyway, because it's not even a balanced cut - its a cut that put the whole nation into a huge deficit while increasing taxes on labor-based incomes. So some already very wealthy capital owners are getting a very massive transfer.

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

#76

Post by TheAdamAndChe »

dragonwriter wrote: post #66
refurb wrote: post #14

Earlier quoted context omitted.

People have been clamoring for more taxes on the rich. Well, this is what it looks like. Oh wait! You didn't think you were rich, right?

> People have been clamoring for more taxes on the rich. But this “tax reform”, in net, does exactly the opposite.

Yet this particular reform _does_ tax the rich more. It's mostly those making >$200k that will be hit, and it removes what were basically subsidies for the richest states in the country.

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

#77

Post by hcknwscommenter »

jartelt wrote: post #23

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 i…

If owning real estate becomes more expensive, there is a very high likelihood that rents will increase rather than decrease.

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

#78

Post by [deleted] »

BeetleB wrote: post #46
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…

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, th…

[deleted]

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

#79

Post by EgoIncarnate »

cortesoft wrote: post #38
lettergram wrote: post #17

Earlier quoted context omitted.

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…

> literally if you didn't have deductions out of $100k you might have a $30k take home. That is just not true. Up until very recently, I had ZERO deductions I could take. I made over $100k in San Francisco and my take home was about 65% of my income.

If you paid state income tax, you should have been able to deduct that at the very least (probably around 6k, or about the same as the standard deduction).

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

#80

Post by vladgur »

Just to be clear, the article is talking about HOUSEHOLDS making more than 200k, not individuals.

With a National average salary for software developers of $109k(per Glassdoor), a family of 2 tech professionals across the nation will see their tax liabilities significantly increase

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