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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

#91

Post by joe_the_user »

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…

If a housing-crash is an unintended consequence of this bill, I'd count it a win.

However, it's quite possible you won't have a crash but simply a consolidation as homeowners who can't afford the taxes are replaced by ultra-rich landlord-speculators.

And of course, this makes sense to the ultra-rich.

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

#92

Post by davexunit »

whitehouse3 wrote: post #26
davexunit wrote: post #10

Earlier quoted context omitted.

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.

It's well-established that the bill gives a tax break to the very wealthiest people and adds over 1 trillion to the deficit, not to mention that the bill manages to squeeze in allowing for oil drilling in protected arctic areas and anti-abortion legislation. After the the bill passes, the increase in the deficit will be offset by cutting social services like Medicare.

This is a very, very, very bad bill, drafted in secret, and being rushed through without hearings or debate. The people in support of this bill should be ashamed of themselves.

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

#93

Post by meritt »

dmode wrote: post #72
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 expan…

Tax payments which directly fund public schools (SALT) are no longer deductible but they added the ability for private school tuition to be deductible. This is going to have dire consequences for America's public school system.

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

#94

Post by lebanon_tn »

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…

Lifelong Californian here. Recently moved to Florida.

You should consider complaining to your local and state government about your high taxes. Why should workers in other states subsidize local taxes for higher cost of living areas through federal deductions? Force your politicians to justify what you are paying.

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

#95

Post by Aloha »

EgoIncarnate wrote: post #79
cortesoft wrote: post #38

Earlier quoted context omitted.

> 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).

which makes it not worth the paperwork effort to do so.

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

#96

Post by jonathankoren »

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?

No one asks this question, because the premise is completely flawed.

http://www.businessinsider.com/the-states-the-most-and-least...

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

#97

Post by davidjnelson »

deadmetheny wrote: post #86
eridius wrote: post #65

Earlier quoted context omitted.

No, this is a hit on the upper middle class. The actual rich aren't feeling the pain.

Spoiler alert: if you make over $200,000 a year, you are the rich compared to most of the rest of the country. I love that a factual statement is getting downvoted, btw. Get a grip on your frame of reference, HN.

Rich is relative to housing costs.

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

#98

Post by git_rancher »

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 upper middle class is apparently a minority that is politically safe to do economic harm to.

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

#99

Post by davidjnelson »

eridius wrote: post #65
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?

No, this is a hit on the upper middle class. The actual rich aren't feeling the pain.

Rich in the bay area is somewhere in the neighborhood of $500k-$1MM/year.

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

#100

Post by TheAdamAndChe »

ghouse wrote: post #67
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:…

> Both are (in theory) receiving the same benefits from the Federal Government and should pay the same in taxes. New York gets about $0.80 for every $1 of taxes paid. Texas gets about $1.50. [1] [1] https://www.theatlantic.com/business/archive/2014/05/which-s...

Both states still recieve the same benefits from the federal government, it's mostly just demographic and economic differences that cause different states to receive different amounts of aid. Or do you really think West Virginians, who are mostly poor, should receive exactly the amount as New York, who is much more rich overall?
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