100 state legislators sign letter to Congress to urge them to eliminate the deduction and pass tax reform
Eliminating the state and local tax deduction through President Trump's tax reform framework could help lower taxes by $1 trillion, according to economist Stephen Moore, who helped put the original tax plan together.
Moore says eliminating the state and local tax deduction will increase revenues for the government over the next decade by $1 trillion, which can be used to cut tax rates even lower.
"We do need the trillion dollars of revenue you get from eliminating the state and local tax deduction to pay for the lower tax rates on businesses and families because we want to get this to about a $2.5 trillion tax cut, and a trillion of that will come from eliminating the state and local tax deduction," Moore explained in a conference call. "This is a provision of tax code that is quite unfair to the low-tax states and I would make the case also that if you are for limited government and more private sector growth then there is absolutely no question that the fact of state and local tax deduction is to encourage more public provision of goods and services and fewer private provisions of services."
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If you can't write it off, one more reason to move to a state without a state income tax.
ReplyDeleteCap it to a level the middle income earners take advantage of and tax the rich / multi-home owners....
ReplyDeleteWhat do you consider rich?
DeleteStephen Moore is the economist who has been known to submit work with severe factual errors. Here is a source that breaks down his dubious facts and cherry picking of data to suit his arguments, even though he was still wrong. http://archives.cjr.org/united_states_project/stephen_moore_heritage_foundation_paul_krugman_kansas_city_star.php
ReplyDeleteSince this state is a tax hell, without being able to deduct Maryland taxes paid, I see this as a tax increase by the Federal Government and not a tax break. You know there is no way in hell Maryland is going to reduce taxes to compensate for this.
ReplyDeleteI am already getting double taxation right now because my wife works in Delaware and we live in Maryland. I have to pay into two states each year. I wait for my federal refund and then pay the states whatever I owe. I even get an additional 20 dollars per pay period taken out of my check to help cover the shortfall each year for my Maryland taxes.
There are few if any jobs here, so we have to take a job where one is available. Can't wait until I retire in ten years so I can get the hell out of this state and move to a more tax friendly state that won't tax my retirement and social security.
But the super rich can now pass on their yachts, expensive and exotic cars, , multiple houses/mansions, rare art and so on to their heirs when the estate tax is eliminated.
ReplyDeleteThe total elimination of the estate tax is the sole purpose of this tax deal with the lower and middle incomes workers losing their deductions in order to pay for the estate tax elimination.
How will the taxpayer pay lower taxes when the government is anticipating an extra $1 Billion in tax receipts?
ReplyDeleteFuzzy math just won't explain this...