The new year has only just begun, but already Democratic politicians in the country’s largest high-tax states are threatening lawsuits and publicly touting proposed workarounds to help compensate tax payers for the elimination of the state and local tax (SALT) deductions which were dramatically rolled back, along with deductions for mortgage interest, as part of the White House’s tax reform plan.
During his state of the state address earlier this week, New York Mayor Andrew Cuomo threatened to sue the federal government over the tax bill, claiming that the plan is unconstitutional and overly burdensome to New Yorkers.
Cuomo said that the new law could raise some families' taxes by as much as 25% and said the plan amounted to "double taxation." He later accused President Donald Trump of waging “economic civil war” on states that didn’t back him during the election, and promised to consider workarounds that would help lower residents’ federal tax bills, according to Bloomberg.
Then, on Thursday, California Senate President Pro Tempore Kevin de Leon introduced a bill that the Washington Post said could become a model for how blue states push back against the Trump tax plan.
According to the Trump tax plan, which took effect in January, taxpayers can only deduct up to $10,000 in state and local taxes when they file their federal return.
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sorry snowflakes. you want it you pay for it.
ReplyDelete
ReplyDeleteThere is absolutely no requirement for Federal deductability of state or local taxes. Except that across the years various provisions were written into law; as such they can be altered. That's what just happened.
Recall how for many years interest paid on credit cards could be deducted. That was changed, too.
Get used to it CA & NY whiners.