Agree with dems here - SALT

[scotchtiger]

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

Lawmakers from high-tax states see a chance to repeal the $10,000 cap on the state and local tax deduction.

www.wsj.com

Hopefully they remove or raise the SALT cap and keep the rest of the cuts in place.

Would save me a bundle.

 

[jakefest]

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

Lawmakers from high-tax states see a chance to repeal the $10,000 cap on the state and local tax deduction.

www.wsj.com

Hopefully they remove or raise the SALT cap and keep the rest of the cuts in place.

Would save me a bundle.

Amen on this one. This knee capped me the last few years, especially here in good old absorbent high tax NJ

 

[TigerGrowls]

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

Lawmakers from high-tax states see a chance to repeal the $10,000 cap on the state and local tax deduction.

www.wsj.com

Hopefully they remove or raise the SALT cap and keep the rest of the cuts in place.

Would save me a bundle.

Make it a standalone or as part of whatever tax plan they put forward. No reason to tuck it in a covid bill.

 

[92TigerME]

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

Lawmakers from high-tax states see a chance to repeal the $10,000 cap on the state and local tax deduction.

www.wsj.com

Hopefully they remove or raise the SALT cap and keep the rest of the cuts in place.

Would save me a bundle.

I don't. It just gives states like NY the opportunity to not pay their fair share.

Rule of Thumb

Don't agree with Democrats on anything.

 

[CU Alumnus]

Repeal of State-Tax Deduction Cap Pitched for Covid-19 Relief Bill

Lawmakers from high-tax states see a chance to repeal the $10,000 cap on the state and local tax deduction.

www.wsj.com

Hopefully they remove or raise the SALT cap and keep the rest of the cuts in place.

Would save me a bundle.

Overall I disagree. If a state wants to charge state taxes out the ass, that's their choice. But I don't think it should figure into the federal tax bill. The ability to deduct some of it is fine, but IMO it should not be exorbitant.

In the end it basically is a free pass for a state to charge whatever taxes they want and the people there really don't feel much pain because they deduct it from their Federal tax.

One thing I do believe is that if this is going to change - either way - it should change for the taxes on 2021 tax year. Not 2020.

 

[scotchtiger]

I don't. It just gives states like NY the opportunity to not pay their fair share.

Rule of Thumb

Don't agree with Democrats on anything.

Yea, I get that to an extent. But SC has a reasonably high state income tax rate. Very very easy to blow through the $10K cap.

My ideal scenario would be to set a percentage cap, which still doesn’t force us to subsidize high tax states as much, but also doesn’t penalize folks like me in SC.

Set the cap at 8% of gross income. Problem solved.

 

[scotchtiger]

Overall I disagree. If a state wants to charge state taxes out the ass, that's their choice. But I don't think it should figure into the federal tax bill. The ability to deduct some of it is fine, but IMO it should not be exorbitant.

In the end it basically is a free pass for a state to charge whatever taxes they want and the people there really don't feel much pain because they deduct it from their Federal tax.

One thing I do believe is that if this is going to change - either way - it should change for the taxes on 2021 tax year. Not 2020.

See what I just posted. Make it a cap based on % of income, since that is what you are trying to limit. 8% protects us in SC while setting some limits on high tax states that gouge on income and property tax rates.

 

[1Clemson]

See what I just posted. Make it a cap based on % of income, since that is what you are trying to limit. 8% protects us in SC while setting some limits on high tax states that gouge on income and property tax rates.

Probably not, people in those high state tax states tend to make quite a bit more gross income-- and pay more federal taxes for those worried about them dodging their share of federal taxes.