Entire eliminating tax deductions for state and local taxes?

Oct 2009
484
81
Cliffside Park, NJ
#1
Entire eliminating tax deductions for state and local taxes?

Eliminating federal income taxes deductions proportional to state and local taxes,(i.e. SALT) was inserted within proposed tax bill, for the purpose of reducing the decade's net federal budget 's deficits if the tax bill is enacted. Congress has restricted the “Tax Cuts and Jobs Act's”, (if the bill's enacted), not to exceed $1.5 trillion dollars, (i.e.$1,500,000,000,000.00) net anticipated increased federal debts over the next decade.

I agree with those contending this provision of the bill will to some extent consequentially reduce state and local tax, (i.e. SALT) revenues. Those are revenues for funding their jurisdiction's public educational systems, safety guardians, and their entire supporting infrastructures.

I am not among those that believe our nation would be better served by entirely eliminating federal income deductions for SALT. It's been suggested that Congress's goals could essentially be accomplished by capping each taxpayer's SALT deduction and pegging all finite dollar tax deductions such as the standard deductions or this proposed SALT deduction to annual cost-of-living adjustments.

Respectfully, Supposn
 
Oct 2017
585
288
In
#2
Many of the states have bloated budgets, they keep raising taxes knowing that those taxes can be written off.

The head of the New Jersey State Senate, a Democrat, says if this passes the state will not be able to raise taxes. Sounds like a good thing.
 
Jun 2013
5,701
1,734
Katmandu
#3
Entire eliminating tax deductions for state and local taxes?

Eliminating federal income taxes deductions proportional to state and local taxes,(i.e. SALT) was inserted within proposed tax bill, for the purpose of reducing the decade's net federal budget 's deficits if the tax bill is enacted. Congress has restricted the “Tax Cuts and Jobs Act's”, (if the bill's enacted), not to exceed $1.5 trillion dollars, (i.e.$1,500,000,000,000.00) net anticipated increased federal debts over the next decade.

I agree with those contending this provision of the bill will to some extent consequentially reduce state and local tax, (i.e. SALT) revenues. Those are revenues for funding their jurisdiction's public educational systems, safety guardians, and their entire supporting infrastructures.

I am not among those that believe our nation would be better served by entirely eliminating federal income deductions for SALT. It's been suggested that Congress's goals could essentially be accomplished by capping each taxpayer's SALT deduction and pegging all finite dollar tax deductions such as the standard deductions or this proposed SALT deduction to annual cost-of-living adjustments.

Respectfully, Supposn
Elimination of SALT deductions was one of the best parts of the tax bill, I wish that the property tax deduction had been totally eliminated instead of partially.
 
Nov 2012
40,770
11,756
Lebanon, TN
#4
Entire eliminating tax deductions for state and local taxes?

Eliminating federal income taxes deductions proportional to state and local taxes,(i.e. SALT) was inserted within proposed tax bill, for the purpose of reducing the decade's net federal budget 's deficits if the tax bill is enacted. Congress has restricted the “Tax Cuts and Jobs Act's”, (if the bill's enacted), not to exceed $1.5 trillion dollars, (i.e.$1,500,000,000,000.00) net anticipated increased federal debts over the next decade.

I agree with those contending this provision of the bill will to some extent consequentially reduce state and local tax, (i.e. SALT) revenues. Those are revenues for funding their jurisdiction's public educational systems, safety guardians, and their entire supporting infrastructures.

I am not among those that believe our nation would be better served by entirely eliminating federal income deductions for SALT. It's been suggested that Congress's goals could essentially be accomplished by capping each taxpayer's SALT deduction and pegging all finite dollar tax deductions such as the standard deductions or this proposed SALT deduction to annual cost-of-living adjustments.

Respectfully, Supposn
You do understand that you can only deduct those if you itemize only 70-80% itemize

Now the standard deduction is being doubled from 6,000 to 12,000 for the individual from 12 to 24,000 for couples.

so actually the lack of the removing the deduction and raising the standard dedutction HELPS 8 OUT OF 10 americans save on their taxes.. plus most of those that itemize don't get 6K in state and local tax deductions to itemize.
 
Oct 2009
484
81
Cliffside Park, NJ
#5
Many of the states have bloated budgets, they keep raising taxes knowing that those taxes can be written off.

The head of the New Jersey State Senate, a Democrat, says if this passes the state will not be able to raise taxes. Sounds like a good thing.
Kelvin, eliminating federal income taxes deductions proportional to state and local taxes,(i.e. SALT) will somewhat slow down increases of states and local taxes; It will also increase the cost of those governments' debt servicing.

It will effectively much less slow down NJ governments' tax increases and much more increase their governments' expenses. The consequences will be net detrimental to NJ taxpayers.

Respectfully, Supposn
 
Oct 2009
484
81
Cliffside Park, NJ
#6
You do understand that you can only deduct those if you itemize only 70-80% itemize

Now the standard deduction is being doubled from 6,000 to 12,000 for the individual from 12 to 24,000 for couples.

so actually the lack of the removing the deduction and raising the standard dedutction HELPS 8 OUT OF 10 americans save on their taxes.. plus most of those that itemize don't get 6K in state and local tax deductions to itemize.
TNVolunteer, I'm aware of only a minority of federal taxpayers itemizing their deductions and due to almost doubling the standard deductions that minority will be greatly reduced.

Federal tax regulations eliminating the SALT deduction will significantly increase state and local government's debt service costs. The consequences will be net detrimental to taxpayers.

Respectfully, Supposn
 
Jul 2014
14,706
8,965
massachusetts
#7
The only effect of the tax bill that most people agree will happen, is a huge increase in the deficit. That always happens with a tax cut.
And a few years down the road revenues rise to where they were before the tax cut, but spending growth keeps the deficit high.

Look, a lot of people get to keep more of their money, most of the money goes to wealthy people, who invest it, because they have no unmet needs to spend it on.
So there is a huge amount, a trillion and a half dollars over the next ten years that will be invested.

There will also be an investment available that wouldn't otherwise be there, that is a trillion and half dollars worth of Treasury notes, and every single one will be sold.
Net increase in funds available for investment = ZERO.
 
Nov 2012
40,770
11,756
Lebanon, TN
#8
The only effect of the tax bill that most people agree will happen, is a huge increase in the deficit. That always happens with a tax cut.
And a few years down the road revenues rise to where they were before the tax cut, but spending growth keeps the deficit high.

Look, a lot of people get to keep more of their money, most of the money goes to wealthy people, who invest it, because they have no unmet needs to spend it on.
So there is a huge amount, a trillion and a half dollars over the next ten years that will be invested.

There will also be an investment available that wouldn't otherwise be there, that is a trillion and half dollars worth of Treasury notes, and every single one will be sold.
Net increase in funds available for investment = ZERO.
that is not true if the economic growth of GDP increases 0.4% it is revenue neutral, if the GDP growth increseases >0.4 above 2016 levels it generates revenue.

What was the GDP Growth in 2016 ? 1.6%

What is the current GDP Growth? 3.3%