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The Mouth

(3,150 posts)

3. If you live in California

Reply to Jose Garcia (Original post)

Thu Dec 19, 2019, 07:52 PM

Dec 2019

losing that deduction really hurt.

The plain fact is that most of the people I know make more money than they would elsewhere, but pay more to live here than they would elsewhere.

In some parts of the country, a $120K household living in a $700K house would be rich. Not in a lot of this state; the NUMBERS may be higher, but it balances out- more pay, more mortgage).

I can see someone in other places making the mistaken assumption that the above described household is 'rich', or 'upper middle class', but they would be wrong.

The Trump tax cuts were brilliantly designed to really hurt people in blue states; lose that SALT deduction and all of a sudden the higher tax<->higher social benefits equation starts to suck much more, putting much more pressure on the statehouse.

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17 replies

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Highlight:

House narrowly passes bill that would restore SALT tax benefits to higher-income Americans [View all] Jose Garcia Dec 2019 OP

World turned upside down. We Democrats trying to cut taxes on the affording and 4139 Dec 2019 #1

I'd say that this deduction would help those living in high tax states, w/ high tax bills, e.g., SWBTATTReg Dec 2019 #2

If you live in California The Mouth Dec 2019 #3

The feds shouldn't be making up for high state and local taxes ripcord Dec 2019 #4

It's a double taxation issue for California Zorro Dec 2019 #5

No it isn't ripcord Dec 2019 #8

You apparently didn't understand my post Zorro Dec 2019 #10

It's a muxh harder issue than one would think MosheFeingold Dec 2019 #16

"2. Anyone hit by this is wealthy, whether they think they are or not The Mouth Dec 2019 #17

SALT would help Middle Class Americans ... aggiesal Dec 2019 #6

This would definitely be a benefit to home owners in New York State. dhol82 Dec 2019 #7

Bad headline & story. Should be "restore benefits to Americans in high-tax states." PSPS Dec 2019 #9

Property taxes? That's part of the SALT deduction that is being capped. progree Dec 2019 #12

Property tax is its own line item and not part of the SALT category PSPS Dec 2019 #13

Nope, see Schedule A again - lines 5a through 5e. Property taxes are included in the $10,000 cap. progree Dec 2019 #14

Those living in states with high property tax would see some relief but its going nowhere, just yaesu Dec 2019 #11

Blue states and cities often have higher state and local taxes IronLionZion Dec 2019 #15