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workinclasszero

(28,270 posts) Sat Mar 2, 2019, 12:17 PM Mar 2019

11 Million Taxpayers Losing $323 Billion In Deductions In Trump Tax Hit

More bad news for middle America after corporate taxes were slashed.

By Mary Papenfuss

There’s more bad news for taxpayers. A government report has revealed that 11 million taxpayers are losing out on $323 billion worth of deductions due to a punishing change in President Donald Trump’s tax law.

The hard news comes after early filers were stunned by shrinking — to vanishing — tax refunds.

The deduction wallop detailed in the government report centers on capped deductions for state and local taxes — including real estate taxes. Formerly all local taxes could be deducted for federal taxes; now it’s capped at $10,000, which particularly hurts homeowners in major metropolitan areas — especially in the Northeast and California — where housing tends to be more expensive.

The cap was imposed to help pay for huge tax cuts to corporations, whose taxes were slashed by 40 percent, from 35 percent to 21 percent.

The deduction hit is so staggering that it could end up swamping modest gains taxpayers had expected to enjoy due to tax cuts.

https://www.huffingtonpost.com/entry/tax-deduction-turmp-323-billion_us_5c7a2da1e4b0e1f77651b412

8 replies

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11 Million Taxpayers Losing $323 Billion In Deductions In Trump Tax Hit (Original Post) workinclasszero Mar 2019 OP

Already seeing disturbing trends / signs that the economy is slowing down ... SWBTATTReg Mar 2019 #1

I think people are holding out till the last minute to file because of all the horror stories workinclasszero Mar 2019 #3

I used the money we got back to pay down some debt just in case the shit hits the fan again, Luciferous Mar 2019 #2

You are wise workinclasszero Mar 2019 #5

republicans have again screwed US taxpayers Achilleaze Mar 2019 #4

I'm happy they got rid of some of those loophole deductions MichMan Mar 2019 #6

More wealth to shore up entitlements GatoGordo Mar 2019 #7

Did my taxes only got back $88 instead of the last years $1500 on the same income. kimbutgar Mar 2019 #8

SWBTATTReg

(22,129 posts)

1. Already seeing disturbing trends / signs that the economy is slowing down ...

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 12:32 PM

Mar 2019

I suspect due to the early reporting of people having to pay in more in taxes than expected and causing others who heard the news to rein in their spending in order to pay the higher tax bill.

Nice!

Make sure that we give credit to our esteemed leader rump and the GOP for awarding their donors, but not the majority of their voters (who are too stupid according to rump to know better).

workinclasszero

(28,270 posts)

3. I think people are holding out till the last minute to file because of all the horror stories

Reply to SWBTATTReg (Reply #1)

Sat Mar 2, 2019, 12:48 PM

Mar 2019

about people who always got a refund suddenly having to pay the IRS thousands because of Rump's tax cut bonanza for the rich and big business.

The day I heard about this scam I went to the office and had them take more withholding out, even on my social security check.

So we are okay, thank God.

I imagine there are a whole lotta pissed off Trump voters right about now and it will get worse as the filing deadline gets closer.

Luciferous

(6,080 posts)

2. I used the money we got back to pay down some debt just in case the shit hits the fan again,

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 12:36 PM

Mar 2019

which it inevitably will with the Republicans in charge.

workinclasszero

(28,270 posts)

5. You are wise

Reply to Luciferous (Reply #2)

Sat Mar 2, 2019, 12:50 PM

Mar 2019

It happens every time republicans get control of the government.

Every damn time!

Achilleaze

(15,543 posts)

4. republicans have again screwed US taxpayers

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 12:49 PM

Mar 2019

so they could make the rich richer. Deplorable.

MichMan

(11,932 posts)

6. I'm happy they got rid of some of those loophole deductions

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 12:58 PM

Mar 2019

The whole home equity loan nonsense for one. When these were taken out for home improvements or repairs, there was some logic towards making them deductible like other mortgage interest.

In my opinion, once people started taking them out to pay for Harley's, snowmobiles, jet skis, & vacation cruises it became counterproductive, as people should have never used their home equity to buy stuff like that. That is one way how so many became upside down. It should have been stopped years ago, IMO.

As someone who is married with zero children, & taking only the standard deduction for years, I hope to see a nice tax cut this year.

GatoGordo

(2,412 posts)

7. More wealth to shore up entitlements

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 01:41 PM

Mar 2019

Making lemonade from lemons.

kimbutgar

(21,155 posts)

8. Did my taxes only got back $88 instead of the last years $1500 on the same income.

Reply to workinclasszero (Original post)

Sat Mar 2, 2019, 01:44 PM

Mar 2019

Thanks repukes, I was going to buy a new dishwasher and get some work done on my house adding to the GDP but will now not be doing it. I bet there’s millions of people who are passed and will not be spending money. While those corporations got big tax breaks and pay zero in taxes because of business deductions which were not eliminated. This tax vote should be a major campaign issue against any repuke running in 2920. Repukes screwed you over again in favor of corporations.

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