7 ms·

So they’ve completely abandoned restoring SALT deductions now? What a win for republicans, penalizing high tax blue states.

paconbork 5y ago
Though many democrats did want to re-enact an overtly regressive tax break, perhaps some realized that it went completely against their stated principles.
refurb 5y ago
Restoring SALT deductions mostly helps the wealthy since you can deduct up to $10,000. Democrats don’t want to burn political capital trying to secure a win for the rich.
- altano 5y ago
  I often see this said but you can do some quick math to see it affects more than wealthy people. A median single-family home in CA is now $800k, so the property tax on that would almost be enough to hit the $10k. And that’s before any other state or local taxes like income tax. I actually don’t support reinstating the SALT tax deduction but the discussion of it seems off.
  - refurb 5y ago
    If you recently bought an $800,000 home you're quite wealthy compared to the median American.
    - sieabahlpark 5y ago
      Inflation certainly isn't going to be a thing then? The point is that it would be a punishment for those living in high cost areas. An 800k "house" in CA is not even remotely close to a 800k house in Nebraska. You can't compare the two reliably without being intellectually dishonest.
    - geoduck14 5y ago
      >If you recently bought an $800,000 home you're quite wealthy compared to the median American. I was in Oakland a couple years back and saw a house for $600k - just looking at it made me want a Tetnis shot. I don't envy Californians for their $800k houses
    - b20000 5y ago
      the median american is not paying california taxes, house prices, schools costs etc
    - altano 5y ago
      If you're willing to say "this deduction only helps wealthy Californians but I define 'wealthy' as people buying median-priced (and lower) homes" than I'll get on board with that statement. I don't think it's a super ambitious or useful one though.
- tharne 5y ago
  > Restoring SALT deductions mostly helps the wealthy since you can deduct up to $10,000. It helps folks in higher cost / higher tax areas. It's not really a rich/poor thing. That was one thing I always chuckled about with respect to the Trump tax cuts and the removal of SALT. They really screwed folks in suburban New Jersey, Long Island, and California. And it was exactly those seats that Republicans lost and which cost them the house in 2018.
dantheman 5y ago
There is no moral reason that state taxes should be deducted from federal taxes.

paconbork 5y ago

Though many democrats did want to re-enact an overtly regressive tax break, perhaps some realized that it went completely against their stated principles.

refurb 5y ago

Restoring SALT deductions mostly helps the wealthy since you can deduct up to $10,000. Democrats don’t want to burn political capital trying to secure a win for the rich.

altano 5y ago
I often see this said but you can do some quick math to see it affects more than wealthy people. A median single-family home in CA is now $800k, so the property tax on that would almost be enough to hit the $10k. And that’s before any other state or local taxes like income tax. I actually don’t support reinstating the SALT tax deduction but the discussion of it seems off.
- refurb 5y ago
  If you recently bought an $800,000 home you're quite wealthy compared to the median American.
  - sieabahlpark 5y ago
    Inflation certainly isn't going to be a thing then? The point is that it would be a punishment for those living in high cost areas. An 800k "house" in CA is not even remotely close to a 800k house in Nebraska. You can't compare the two reliably without being intellectually dishonest.
  - geoduck14 5y ago
    >If you recently bought an $800,000 home you're quite wealthy compared to the median American. I was in Oakland a couple years back and saw a house for $600k - just looking at it made me want a Tetnis shot. I don't envy Californians for their $800k houses
  - b20000 5y ago
    the median american is not paying california taxes, house prices, schools costs etc
  - altano 5y ago
    If you're willing to say "this deduction only helps wealthy Californians but I define 'wealthy' as people buying median-priced (and lower) homes" than I'll get on board with that statement. I don't think it's a super ambitious or useful one though.
tharne 5y ago
> Restoring SALT deductions mostly helps the wealthy since you can deduct up to $10,000. It helps folks in higher cost / higher tax areas. It's not really a rich/poor thing. That was one thing I always chuckled about with respect to the Trump tax cuts and the removal of SALT. They really screwed folks in suburban New Jersey, Long Island, and California. And it was exactly those seats that Republicans lost and which cost them the house in 2018.

dantheman 5y ago

There is no moral reason that state taxes should be deducted from federal taxes.