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This is the point of the tax bill: to punish blue states and the educated. The removal of state income tax deductions; the cutting of mortgage interest deducti

by x0x0 9y ago

This is the point of the tax bill: to punish blue states and the educated. The removal of state income tax deductions; the cutting of mortgage interest deductions; and the removal of the graduate school tax break all point the same direction. As for Scott's suggestion that maybe universities can not charge, I can't possibly see that flying with the IRS. If the students still get that valuable education, taking something that used to cost $30k or more, declaring it "free" while still delivering the thing, and telling the irs that therefore, tada! no taxes are due! is... very unlikely to work. What we have is the removal of a specific tax break aimed at graduate school education in order to punish the educated.

plandis 9y ago
That’s probably not the purpose of the tax bill for anyone voting on it. That’s being said I’m sure that some representatives/senators get a kick out of harming people from democratic (“blue”) states.
dmix 9y ago
Funny how quickly even a vaguely political comment by the OP (mentioning "identity politics") descends into the worst kind of political tribalism. Sadly we can't have even marginally political posts on HN anymore because of this. US politics is currently too cancerous and toxic (as tends to happen cyclically) to have rational, well thought-out back-and-forths on topics without it descending into generalizations and attacking caricatures of "the other team".
leereeves 9y ago
None of these changes punishes anyone. Each of these changes removes some form of favoritism. Right now, people in states with high tax rates, people with mortgages, and graduate students pay lower federal tax rates than other people who don't share those favored statuses. One could more credibly argue that the current system punishes people who don't receive these tax breaks. (Graduate students are favored if you count free tuition as compensation in the same way benefits like cars or apartments given to employees by other employers count as taxable compensation.)
- mnm1 9y ago
  Yes, it's such a favored status to pay more than ten percent of your income to state taxes. People are literally stomping over each other to move to places where their state taxes are the highest, not wanting others to get there first and pay more taxes than they do. These people are clearly, incredibly privileged to have the honor to pay such high state taxes. What favoritism. In the meantime people in states with no taxes are furious. "Why don't we get to pay high taxes?" they cry. We are not favored. The money in their bank accounts is filling up their accounts and they're worried they might not get FDIC protections on all the vast sums of money they accumulated by not being favored by the law. "Such favoritism," they scream. Certainly, the only solution is to make those favored even more favored by raising their taxes even more. Somehow this, in the mind of the unfavored, those poor souls not allowed to pay state taxes, might magically fix things. Clearly no-one has thought anything out really. What favoritism indeed ...
  - leereeves 9y ago
    If I interpret your sarcasm correctly, you're saying they're being punished by high state taxes? Place the blame for that where it belongs, on the state government. But if the people of a state choose to pay higher state taxes, that doesn't entitle them to pay lower federal taxes.
- digitaltrees 9y ago
  You can argue that this isn’t punishment. But I don’t think you can argue that this isn’t targeted or a clear expression of priorities. Churches aren’t being taxed here. They could have lost their tax exempt status. The Increase to the Child tax credit that would have helped low income families isn’t in the bill. There is no reduction in military spending to offset the cost. And it sure looks like the states most severely affected by removing the state tax deduction vote democratic. Especially since these states actually subsidize most of the other states through their much larger tax base and its contributions to federal tax that is redistributed to the rest of the country. Let’s remember that grad students are now being taxed for money they never receive. It’s not like money is changing hands for tuition. If they were a business and the university paid them $100k they would be able to expense the tuition.
therealjumbo 9y ago
So tax increases on other people are part of living in society and paying your fair share, tax increases on stuff you care about is a punishment and evil? I think this is a stupid rule change but you're not reaching across the aisle with that argument.
deleted 9y ago
[deleted]

by x0x0 9y ago

plandis 9y ago

That’s probably not the purpose of the tax bill for anyone voting on it. That’s being said I’m sure that some representatives/senators get a kick out of harming people from democratic (“blue”) states.

dmix 9y ago

Funny how quickly even a vaguely political comment by the OP (mentioning "identity politics") descends into the worst kind of political tribalism. Sadly we can't have even marginally political posts on HN anymore because of this. US politics is currently too cancerous and toxic (as tends to happen cyclically) to have rational, well thought-out back-and-forths on topics without it descending into generalizations and attacking caricatures of "the other team".

leereeves 9y ago

None of these changes punishes anyone. Each of these changes removes some form of favoritism. Right now, people in states with high tax rates, people with mortgages, and graduate students pay lower federal tax rates than other people who don't share those favored statuses. One could more credibly argue that the current system punishes people who don't receive these tax breaks. (Graduate students are favored if you count free tuition as compensation in the same way benefits like cars or apartments given to employees by other employers count as taxable compensation.)

mnm1 9y ago
Yes, it's such a favored status to pay more than ten percent of your income to state taxes. People are literally stomping over each other to move to places where their state taxes are the highest, not wanting others to get there first and pay more taxes than they do. These people are clearly, incredibly privileged to have the honor to pay such high state taxes. What favoritism. In the meantime people in states with no taxes are furious. "Why don't we get to pay high taxes?" they cry. We are not favored. The money in their bank accounts is filling up their accounts and they're worried they might not get FDIC protections on all the vast sums of money they accumulated by not being favored by the law. "Such favoritism," they scream. Certainly, the only solution is to make those favored even more favored by raising their taxes even more. Somehow this, in the mind of the unfavored, those poor souls not allowed to pay state taxes, might magically fix things. Clearly no-one has thought anything out really. What favoritism indeed ...
- leereeves 9y ago
  If I interpret your sarcasm correctly, you're saying they're being punished by high state taxes? Place the blame for that where it belongs, on the state government. But if the people of a state choose to pay higher state taxes, that doesn't entitle them to pay lower federal taxes.
digitaltrees 9y ago
You can argue that this isn’t punishment. But I don’t think you can argue that this isn’t targeted or a clear expression of priorities. Churches aren’t being taxed here. They could have lost their tax exempt status. The Increase to the Child tax credit that would have helped low income families isn’t in the bill. There is no reduction in military spending to offset the cost. And it sure looks like the states most severely affected by removing the state tax deduction vote democratic. Especially since these states actually subsidize most of the other states through their much larger tax base and its contributions to federal tax that is redistributed to the rest of the country. Let’s remember that grad students are now being taxed for money they never receive. It’s not like money is changing hands for tuition. If they were a business and the university paid them $100k they would be able to expense the tuition.

therealjumbo 9y ago

So tax increases on other people are part of living in society and paying your fair share, tax increases on stuff you care about is a punishment and evil? I think this is a stupid rule change but you're not reaching across the aisle with that argument.

deleted 9y ago

[deleted]