Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
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Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#2Isn’t SALT preventing double taxation? And isn’t this just returning it to the state prior to the trump tax bill?
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#3Isn’t SALT preventing double taxation? And isn’t this just returning it to the state prior to the trump tax bill?
Yes. Not only that, but SALT deductions happen primarily in "blue" states which pay into the federal budget much more than they receive. The SALT cap was put into place as a partisan punishment.
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#4What is the SALT deduction?
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#5Isn’t SALT preventing double taxation? And isn’t this just returning it to the state prior to the trump tax bill?
Whether or not a state and local tax deduction counts as "double taxation" depends entirely on what you mean by "double taxation".
For example, one could say that sales tax is a form of "double taxation" because you were already charged tax on your income and now you are being charged tax again when you try to spend it. Or, one could say that income tax and sales tax are two unrelated taxes, and they should not be considered "double taxation".
In the case of the SALT deduction, it depends on whether you think that states (and local governments) taxing your income is a separate tax from the federal government taxing your income, or whether you think that they overlap and should count as "double taxation".
But mostly it just depends on whether you think it benefits your political party or the other political party.
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#6I'm surprised Democrats haven't made taking a loan against an asset a taxible capital-gains event.
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#7That's racist and just more White Privilege from the Poverty Pimps!
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#8I'm surprised Democrats haven't made taking a loan against an asset a taxible capital-gains event.
Think about that for a moment, why might that be a bad idea?
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#9>Taxpayers making between $500,000 and $1 million are set to see an average tax cut of over $6,000 next year.
That...seems pretty negligible. Especially if you consider the number of people actually in that tax bracket. According to this link [0], approximately 1.6MM households are in this tax bracket...so that's about 10 billion dollars in lost revenue, which seems small relative to the size of the spending bills.
Re: Democrats want to give a tax cut to the top%, 6x bigger than any other bracket
#10Is there any reason there shouldn't be a cap on state and local tax deductions (SALT) from the federal tax, apart from it affect people more in blue (high cost) states?
Why should the federal government subsidize high state and local taxes? It obviously most benefits the wealthy who are well above the current SALT cap. The standard deduction is already pretty high, ~25k for married couple. And if you're paying that much in state and local taxes, you're pretty well off.