Trump tax plan eliminates big perk for high-tax states; Removes state, local property tax deductions; Real Estate Investment Market Affected Big Time

[SirLinksALot]

SOURCE: NEW YORK POST

URL: http://nypost.com/2017/09/27/trump-tax-plan-eliminates-big-perk-for-high-tax-states/

By Marisa Schultz


President Trump will release a sweeping plan Wednesday to cut taxes and simplify the tax code that will eliminate the deduction for state and local taxes — a move that Gov. Andrew Cuomo has warned would be a “death blow” for New York.

Despite fierce opposition from high-tax states when the idea was first floated, the Trump administration is pushing ahead with the repeal, which would remove state and local income and property taxes as deductions on federal returns.

The perk — first enacted with the income tax in 1913 — is most heavily used in coastal, bluer states that include New York, California, New Jersey and Connecticut.

Repealing it would increase federal revenue by $1.3 trillion over the decade, according to the Tax Policy Center.

But it would also slam high-income New Yorkers.

Manhattan leads the way nationally in taking the deduction, with residents writing off an average of $24,898 on their federal returns.

Deductions would remain for mortgage interest and charitable contributions.

Also, the standard deduction would nearly double to $12,000 for individuals and $24,000 for married couples.

The administration and GOP tax committee leaders will release the plan Wednesday.

They’ve agreed on the framework for the tax overhaul, while committees will have some flexibility to fill in the details.

Tax brackets will be whittled down to just three: 12, 25 and 35 percent, with room to add a fourth higher rate if necessary to ensure the wealthy pay their fair share.

But the income levels for the brackets will be decided by the congressional committees.

(EXCERPT) CLICK ABOVE LINK FOR THE REST....

[KingsX]

The DEVIL is in the details the GOP is not yet telling you... like the GOP plan to eliminate personal exemptions and the extra senior standard deduction.

Trump said the new GOP standard deduction will be  $12,000 single / $24,000 couple... that is NOT doubling the current 2017 standard deduction of $6350 single / $12,700 couple or the projected 2018 standard deduction which is $6500 single /  $ 13,000 couple

Trump did not say whether or not  this arbitrary $12000/$24,000 standard deduction will the adjusted annually for inflation. Maybe it will be like Reagan's 1983 "tax cut" that turned out to be a new tax on Social Security based on an arbitrary $25,000 income that was NOT set up to be adjusted for inflation and is now a burden to all seniors.

Trump failed to mention the GOP plan to eliminate personal exemptions and extra senior deduction.

[libertybele]

SOURCE: NEW YORK POST

URL: http://nypost.com/2017/09/27/trump-tax-plan-eliminates-big-perk-for-high-tax-states/

By Marisa Schultz


President Trump will release a sweeping plan Wednesday to cut taxes and simplify the tax code that will eliminate the deduction for state and local taxes — a move that Gov. Andrew Cuomo has warned would be a “death blow” for New York.

Despite fierce opposition from high-tax states when the idea was first floated, the Trump administration is pushing ahead with the repeal, which would remove state and local income and property taxes as deductions on federal returns.

The perk — first enacted with the income tax in 1913 — is most heavily used in coastal, bluer states that include New York, California, New Jersey and Connecticut.

Repealing it would increase federal revenue by $1.3 trillion over the decade, according to the Tax Policy Center.

But it would also slam high-income New Yorkers.

Manhattan leads the way nationally in taking the deduction, with residents writing off an average of $24,898 on their federal returns.

Deductions would remain for mortgage interest and charitable contributions.

Also, the standard deduction would nearly double to $12,000 for individuals and $24,000 for married couples.

The administration and GOP tax committee leaders will release the plan Wednesday.

They’ve agreed on the framework for the tax overhaul, while committees will have some flexibility to fill in the details.

Tax brackets will be whittled down to just three: 12, 25 and 35 percent, with room to add a fourth higher rate if necessary to ensure the wealthy pay their fair share.

But the income levels for the brackets will be decided by the congressional committees.

(EXCERPT) CLICK ABOVE LINK FOR THE REST....

12% seems pretty hefty to me and I would venture to say that this new proposed tax is actually going to raise taxes on the poor and seniors.

[DB]

So now Trump wants me to pay federal taxes on money that I paid as state and local taxes... Taxing the tax money...

F'me...

The hits just keep on coming...

[InHeavenThereIsNoBeer]

So now Trump wants me to pay federal taxes on money that I paid as state and local taxes... Taxing the tax money...

F'me...

The hits just keep on coming...

Does your state not allow you to deduct federal taxes from your taxable income?  That's the way it worked in the couple states I lived in that had state income taxes.  And that is the way it should work.

[Chosen Daughter]

So now Trump wants me to pay federal taxes on money that I paid as state and local taxes... Taxing the tax money...

F'me...

The hits just keep on coming...

That's what we get when we hire the billionaire to lead us.  I predicted this from the get go.  He is making a new tax code for himself.

I get sick of politicians that think of the little people like fleas in the rug.  Someone has to vote for them.  And believe me I am done with GOP.