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I hope one day they get rid of all write offs and deductions
I’d vote for a flat tax tomorrowMe Too! ( In three years when my house is paid off!)
I always owe. However, my total Federal tax went down about $3k. And it is still waaaay to much.
A good friend of mine says "Yeah, I hate paying taxes too. But like it if I call the fire department and they show up"
I am in favor of a flat tax. Stop penalizing people for hard work and success. And FFS, if someone is physically able and under retirement age, if they get a check, make them do something.
Who in their right mind would ever think that the fed gov giving a "credit" for taxes paid to state/local taxes would ever end well long term...
Oh, I am employed in mis-managed CT and live in MA. I had to pay in to CT.
A good friend of mine says "Yeah, I hate paying taxes too. But like it if I call the fire department and they show up"
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This!We never get a refund. And I like it that way. Why on earth would I want to give emthe fed an interest free loan all year.
I tried to explain this to people at work too and about them getting more in each check. They didn’t want to hear it or do the math
If you earn enough to itemize and live in a high-tax state and locality, yeah, you very well might come out behind on this one. Part of the idea is to stop rewarding high-tax/spend states with effectively taking the money from other states.
That might be theoretically true, if all states were otherwise equal, but they’re not.
It turns out that the high tax states tend to pay more federal tax and get less federal benefits than the low tax states.
True, but unrelated. "Part of the idea is to stop rewarding high-tax/spend states with effectively taking the money from other states." The unlimited SALT deduction was an incentive to increase state spending. That it tends to be the case that high-tax states are now net-contributors from a federal tax/spend perspective doesn't detract that an unlimited SALT deduction has been, throughout the history of the federal income tax, an incentive to all states to increase their tax/spend. A cap makes sense. We can certainly argue where it should be (and I'd bet almost all rational selfish-interest economic actors would say it should be just a few percent over their own SALT burden), but a cap on it is necessary to stop runaway tax/spend effectively subsidized by the federal government.
Sure, which is the reason it was there in the first place from the start. But it is also irrelevant if it created a perverse incentive. A cap on it balances the double-taxation issues with throttling back the perverse incentive. If it was all so neutral as to just be avoiding double taxation, I wonder why states didn't propose their income taxes have deductions for federal tax over the SALT line in response to the cap rather than just trying to find ways to have the same tax not count as SALT.The counter argument is that it's unfair for the feds to tax money you were forced to pay as tax to the state (or the town) Double taxation seems unfair.
Sure, which is the reason it was there in the first place from the start. But it is also irrelevant if it created a perverse incentive. A cap on it balances the double-taxation issues with throttling back the perverse incentive. If it was all so neutral as to just be avoiding double taxation, I wonder why states didn't propose their income taxes have deductions for federal tax over the SALT line in response to the cap rather than just trying to find ways to have the same tax not count as SALT.