If you do, you've been duped.
The new tax reform bills offered by both the House and Senate will probably raise taxes for all taxpayers because nifty little things like local and state tax exemptions will go bye-bye. To date, everyone in every state can deduct their state and local taxes from their federal taxable income. This means quite simply, your taxes will increase!
Furthermore, with people who own homes in excess of $500,000, will be on the hook for all the interest paid over that amount on outstanding mortgages. Meaning, you won't be able to write that interest off. Is this promoting people to stop buying and building $500,000+ homes? Doesn't this put people scrambling to downsize because they don't want to be holding a really big tax bill in April (or October?) You betcha. It's not about just sticking it to the rich either.
What does this mean for you - Mr. & Ms. Renter? Well, your landlords will be on the hook for higher tax bills, so no doubt, it will trickle down to the rent you pay. The average rents in Salisbury is around $1,200.00; however, now, you can expect to pick up the slack Congress is going impose on your landlord.
Perhaps it would be advantageous for you, Mr. & Ms. Taxpayer, to take a deeper look into the tax bills before throwing your Tax Reform party or listening to the Mainstream Media which is pitching for the government team. If the MSM told the truth, the Markets would tank immediately!
Let's hope President Trump will VETO the final bill if it moves to his desk... but until then, get out your checkbooks because if it passes and he signs on the dotted line, your taxes are about to go up BIGLY!
21 comments:
I've been trying to tell y'all this but you were too high on the GOP spirits.....
Of course it won't go down it never does nor will it ever...
This article leaves out some very important facts. 70% of households currently take the standard deduction and do not make use of deducting state and local taxes and mortgage interest. With the proposal to double the standard deduction, their taxes will go down
If you say so, 122. Cool! I've read the bills so far, have you?
"To date, everyone in every state can deduct their state and local taxes from their federal taxable income."
Only partially true. You can only deduct if you itemize. Most people take the standard deduction and don't itemize.
Also this is a disincentive for states to wisely manage and spend the tax dollars they collect. If this exemption goes away then wealthy people(who do itemize) will no longer be able to deduct their state taxes from their federal income thus they will have to pay more money. This will cause them to think twice about where they live. This is why more people haven't left New York, California, Illinois, and Maryland because they know even though those states keep raising taxes they can offset the extra cost from their federal tax.
This is why Republican Congressman King from New York state is against the bill.
As far as the Mortgage Interest expense deduction. The answer to the question is no it won't stop people from building or buying half million dollar homes, although it will keep people that can't really afford an expensive home from buying one. Also as to renters paying more, the mortgage interest on a rental home is a deduction on Schedule E and not on the regular itemized deductions.
What a freaking mis-statement of the facts! Borrowed money for a business expense, is still tax deductible from the income derived from the business. Landlords will still be able to deduct their interest expense for rental properties (business expense), but not on the interest on the amount on over $500K on their personal properties.
My house is paid for and my income is getting ready to be much lower when I retire. Raising the standard deduction will result in a zero tax bill for me. Bring it on!
It's ironic that the Government will continue to tax Social Security and Unemployment income. Why give it to us when they simply take some of it back in the way of taxes?
I live in a modest home, and our household income is only around 75K. We struggle now to pay the bills and look for what federal tax refund we get to help pay the state taxes.
We just break even each year. I think everyone will now suffer because of the loss of these deductions. States will really have to justify to their residents, any tax increases.
There is a tax revolt now, just based on the fact that the working class is fed up and part of the reason they voted for Trump. If they do this, and then decide not to repeal the healthcare penalty for not opting to pay for Obama care, then I think you will really see an outcry.
I like and support Trump, but this tax bill doesn't look like a very good deal for us working class, who are already over taxed as it is.
Has it ever occurred to any of you that tax reform should be accompanied by spending CUTS? If DC continues to spend at the rate they are spending, tax cuts won't make any difference. All the tax return postcards in the world will not dig us out of the abyss.
In reality we don't have a tax problem. What we have is a government spending problem.
1:22 is right.
3:42 Truth 🙌🏻
Some talking head today said the working class makes between 200K and 500K. I thought my head was above water and come find out I'm in poverty.
6:08 It depends on location, location , location. Oh, and education level.
piss off you lyin dirtbag! so you can't deduct you mansion! or you live in section 8 and may not get thousands back even though you never paid anything in. I'm tired of paying for all you freeloaders so suck it up. Can't honestly get much worse for most of us! snowflake!
3:42 ..Hold On Now ..Don't Have A Tax Problem ??? ..Yes Sir We Most Certainly Do ! gas..death ..sales.. alcohol..food .. clothing .. inheritance...My Goodness...The Tax List Goes On Forever !!! AND ..yes..we also Have Spending Problem Too !! The Correct answer Is : BOTH !!
Amen!!!
It is Only going to get Far Worse !!!! They are Fooling U
Maybe the Senate will reinstate the Local & State tax deduction. They should because it's double dipping taxation. Not good.
The doubling of the standard deduction will way more than offset the the deduction (remember, it's never been a tax credit) for state and local taxes for most Americans. It's wealthy Americans that pay the most taxes, that eliminating the tax deductions will hurt the most.
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