Trump's tax plan is ALREADY in trouble with his own party as plan to axe state and local tax deduction comes under fire from Republicans

[Right_in_Virginia]

Trump's tax plan is ALREADY in trouble with his own party as plan to axe state and local tax deduction comes under fire from Republicans
Daily Mail/UK, Sep 29, 2017

As President Trump prepares to sell his tax plan to the nation's manufacturing lobby on Friday, his best-laid tax plans have already drawn objections from some fellow Republicans who are fuming over the decision to end deductions for state and local income taxes.  The situation will pit the White House against members of Congress from states that pile high income taxes on top of what the federal government takes from paychecks.

High-income Californians, for instance, pay as much as 13.3 per cent of their income to the state in addition to their federal taxes. New Yorkers can pay up to 8.82 per cent.  Just seven U.S. states have no personal income taxes, including Texas, Florida and Nevada.

Under the Trump tax reform plan, a family earning $100,000 in Los Angeles pays about $6,000 in state and local income taxes. Losing the ability to deduct that expense would cost the hypothetical taxpayers around $1,800.

The GOP is working on a way to pacify legislators whose constituents would wind up paying more.


Read more: http://www.dailymail.co.uk/news/article-4932944/Trump-promote-tax-plan-address-manufacturers-group.html#ixzz4uAIzW7qm

[endicom]

"Seven states have no income taxes, meaning their citizens wouldn't be affected"

Maybe we should look at that. Why are people willing to move to states where they lose that deduction?


As with the situation in Puerto Rico, http://www.gopbriefingroom.com/index.php/topic,283613.msg1467935/topicseen.html#msg1467935 , Trump is forcing a look at the long term rather than simply putting a bandage on the boo boo.

[aligncare]

Eliminating the deductions for state and local tax is a very important component of tax reform.

Without that deduction, residents of high tax states like New York and California will get hammered on their federal taxes, removing the veneer of affordability. Residents might then feel the tax burden, demand state reform, and begin voting accordingly for state representatives to lower taxes.

[Bigun]

How about we just get rid of the Marxist income tax altogether and be done with it once and for all!

https://fairtax.org/about/how-fairtax-works

[cato potatoe]

The tax code can only be simplified one piece at a time, or in the wake of a revolution.  It has become a key component of the welfare state.

[Bigun]

The tax code can only be simplified one piece at a time, or in the wake of a revolution.  It has become a key component of the welfare state.

Reason #12206 why we need to be rid of it!