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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLower refunds amplify calls to restore key tax deduction
Complaints about lower refunds and higher taxes are amplifying calls from Northeast and West Coast leaders to do away with the GOP tax laws limit on the deduction for state and local taxes.
The limit on the tax break, known as the SALT deduction, has been one of the most controversial provisions of the tax law, with lawmakers from both parties in high-tax states such as New York and New Jersey arguing that the deduction cap unfairly punishes their voters.
A group of Democratic governors held a press conference on Friday to press Congress to restore the full SALT deduction.
"It is appropriate that we're having this discussion in the middle of tax season as [the deduction cap] is gutting our middle class and it's just plain wrong," said New Jersey Gov. Phil Murphy.
The governors' press conference comes after New Jersey Democrats Rep. Bill Pascrell and Sen. Bob Menendez earlier this month introduced a bill to restore the full SALT deduction. It's one of several bipartisan bills that lawmakers have introduced this year to restore the full SALT deduction, and it has the backing of a number of lawmakers in the Northeast, Illinois and California, including Rep. Chris Smith (N.J.), one of the few House Republicans who voted against the 2017 law and remains in office.
In an op-ed for The North Jersey Record on Friday, Pascrell and Menendez called the SALT deduction cap a main culprit for the tax sticker shock in New Jersey and other high cost-of-living states.
https://thehill.com/policy/finance/431227-tax-filing-season-heats-up-fight-over-key-deduction
It's very simple. The Repukes want the blue states to continue subsidizing the red states as they've always done.
mr_lebowski
(33,643 posts)with this bullshit.
Can't underestimate the value of something like that
unblock
(52,503 posts)But they think "blue states" and see it as a target and that's as far as their thought process goes.
roamer65
(36,748 posts)NY and New England would certainly be better off as Canadian provinces.
California may be as its own independent nation.
still_one
(92,528 posts)20% off the top tax break on profits from corporation profits is going to make the deficit even worse, and with the new tax law fraud eliminating the ACA mandate, premiums are going to go even higher, along with the trade wars which have increased food and other costs, those regular folks who experience any tax benefit will soon realize that benefit will go to pay for those other higher costs.
uponit7771
(90,371 posts)roamer65
(36,748 posts)Which in the long run is a good thing for the planet.
The end of the personal exemption should have been grandfathered, not just abruptly ended. The abrupt end of it is throwing too many into financial chaos.
still_one
(92,528 posts)roamer65
(36,748 posts)If it continues, it will pit state against state, class against class. A ready made recipe for civil unrest.
uponit7771
(90,371 posts).. ".. they didn't understand it ..." shit coming from the M$M can only go so far.
The IRS is ... JUST NOW ... sending out the rules for schedule C. If someone has there's done already they'll have to redo it.
This has been a fuster cluck from A-Z
lindysalsagal
(20,796 posts)don't get that they should be embarassed that they don't pull their own weight and require hand-outs from the blue states.
roamer65
(36,748 posts)I am ultra liberal and I got a nice tax cut. Ill use it for some nice Democratic campaign contributions next year.
pnwmom
(109,025 posts)They were already subsidizing them. This makes it worse.
DinahMoeHum
(21,839 posts)?????
MichMan
(12,002 posts)DinahMoeHum
(21,839 posts)You never know.
roamer65
(36,748 posts)I am going to use 2017 taxes as the reference point and use the remaining vehicles to reduce my taxable income as we continue forward.
You all should be aiming for this if possible as the supposed middle tax cuts sunset in 2027. Which means our tax burden going forward is only going to get worse.
They will not get this money back from me without one helluva fight. If the scummy 1 percenters dont hafta give theirs back, Im not going to either. Give me a top marginal rate of 70 percent or else!
Tax people like its 1979!
bluecollar2
(3,622 posts)Property and sales taxes are very high...