States most impacted by removal of state and local taxes deduction on federal taxes

Discussion in 'Politics, Religion, Social Issues' started by Rogifan, Sep 29, 2017.

  1. Rogifan macrumors Core

    Rogifan

    Joined:
    Nov 14, 2011
    #1
    Notice the darker greens in a lot of upper Midwest states that Trump won or narrowly lost (like Minnesota). The increase in taxable income may not be offset by whatever increase in personal exemptions/standard deductions there are and some people (like middle class suburbanites) could end up paying more taxes.

    http://amp.nationalreview.com/corner/452002/tax-hike-coming-trump-voters-blue-states
    https://static.taxfoundation.org/state-local-deductions-2014/index.html
    [​IMG]

    I’m still waiting for Republicans to do real tax reform like replacing the current tax code with a flat tax and eliminating all deductions. This tax bill is not that.
     
  2. oneMadRssn macrumors 601

    oneMadRssn

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    New England
    #2
    Why would they do this? Oh, it's to tax corporations less and tax foreign profits even less. #americafirst
     
  3. yaxomoxay macrumors 68040

    yaxomoxay

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    #3
    Why would you do that? It would damage poor families. With 2 kids
    $14,000 taxable income year
    $(12,000)std deduction
    $(2,000) dependant child deduction
    ———-
    0 taxable income. 10% tax bracket. $0 owed.

    A flat tax at let’s say 10%.
    $14,000 taxable income
    ——
    $14,000 taxable income. 10% tax bracket. $1,400 owed.
     
  4. Rogifan thread starter macrumors Core

    Rogifan

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    Nov 14, 2011
    #4
    I think everybody should have to pay taxes. Taking more people off the tax rolls makes them less invested in good government/responsible government spending. They’ll vote for politicians who support all kinds of pork and welfare because it doesn’t cost them anything.
    --- Post Merged, Sep 29, 2017 ---
    I’m sure some think this is a clever way to get blue states to pay more taxes. But this impacts more than just liberal millionaires and billionaires in New York and California.
     
  5. BoxerGT2.5 macrumors 68000

    BoxerGT2.5

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    #5
    Cue the "everyone has skin in the game".
     
  6. yaxomoxay macrumors 68040

    yaxomoxay

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    #6
    I disagree. A tax relief is much different than a welfare subsidy.
    In my hypothetical scenario, the family made the $14,000 through legitimate income. I don’t see any reason to remove a very high portion of what they earned while their situation is so unstable.
    Now, handing out stuff just because they make $14,000 is different and can cause many problems. Your scenario would damage working families in times of difficulty.
    Heck I’d rather put the standard deduction at 50,000 to encourage families to move up without feeling the pain of increased taxation rather than enlarging welfare.
     
  7. RootBeerMan macrumors 65816

    RootBeerMan

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    #7
    I'm dead on in one of the $5K+ areas. This is just another republican transfer of wealth to their pet voters. Hopefully it will get nowhere. Trump and his rich buddies can afford this nonsense. The rest of America can ill afford any increases. A pox on all their houses!
     
  8. samiwas macrumors 68000

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    Atlanta, GA
    #8
    Any flat tax should have a standard deduction. $50k might be a bit high, but $15k is probably a good start.
     
  9. Rogifan thread starter macrumors Core

    Rogifan

    Joined:
    Nov 14, 2011
    #9
    And I’m sure it would. But it seems like politicians want to keep increasing the number of people who don’t pay tax. I’m all for paying less tax and I think the government spends way too much but everyone needs to pay some federal income tax.
     
  10. oneMadRssn macrumors 601

    oneMadRssn

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    #10
    I think the messagings has to be on point and focused here: This tax plan is a wealth transfer to Trump and his rich buddies. Anyone that says Trump and his friends aren't benefiting is brazenly lying.
     
  11. 0007776 Suspended

    0007776

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    #11
    Should rich people have to pay enough that they actually notice the money going out or is it only poor people that should notice the money being taken from them?
     
  12. Herdfan macrumors 6502

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    #12
    Actually most Flat Tax proposals have a much larger standard deduction. So the family in the example would still pay no taxes.
     
  13. yaxomoxay macrumors 68040

    yaxomoxay

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    Texas
    #13
    Any link to a proposal that is just not theoretical but a decently devised plan? (Honest question, I am interested)
     
  14. Mousse macrumors 68000

    Mousse

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    #14
    $15K? I think whatever the Government states as the poverty level should be standard deduction point. You have to give people enough to live on. Anything above barest cost of living being taxable make sense.

    Too bad we can't pay taxes a la carte. I'm willing to pay higher taxes if all if it goes into schools and infrastructure. I ain't paying another dime for us to send boys and girls around the world to kill. Let the war mongers pay for the war themselves.
     

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13 September 29, 2017