General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPeople , I must confess,,,,
I not sure I can listen to Don the Con brag on and on and on abt passing this Tax bill that going to screw over so many working folk!
Response to Cryptoad (Original post)
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pnwmom
(108,979 posts)who will never be able to take full deductions for them.
Hoyt
(54,770 posts)at such a level that they will be harmed from a $10,000 deduction cap and a few percentage points off their tax rate? Not many, but there might be a few. I would agree thats a hardship, but it wont be many.
pnwmom
(108,979 posts)and income taxes could be hit by that cap.
Yes, their incomes would make them rich in a rural state. But they couldn't make those incomes in a rural state.
For example, Portland has a 9% income tax on incomes above $9,000.
Their median house price is about $350K. To qualify for that median house a couple would need a combined income of considerably more than $100K (if you were a new buyer.)
So a person purchasing a median priced home in Portland would owe more than $9K in income taxes alone -- not including any real estate taxes.
And prices are much, much higher in Seattle, San Francisco, California, the NY metropolitan area, and Boston.
Hoyt
(54,770 posts)$9000. With an $100K income, theyll pay a little less than $1000 in federal tax on that taxable $5000, but theyll gain on the 3% reduction in rates. So they still come out ahead. The loss of exemptions will hurt though. And thats assuming they dont take standard deduction.
pnwmom
(108,979 posts)It's the highest earners that got a significant reduction in tax rate, not people at the hundred thousand level.
And millions of people work in cities that are far more expensive than Portland -- because that's where their jobs are. All these people can't move out to the country where the houses are cheaper. There are also few jobs there, compared to urban areas.
https://www.consumerreports.org/money/new-tax-bills-winners-and-losers/
Interest on up to $750,000 in mortgage debt on a newly-purchased primary home could be deducted; that's a drop from the $1 million allowed now. That change, coupled with the changes to deduction of state and local taxes, could slow or stall real-estate markets in some high-tax, high-priced areas, predicts Lawrence Yun, chief economist at the National Association of Realtors.
"In places like Connecticut, New York and New Jersey, youll begin to see home buyers hesitate or scale down which properties they purchase," he says. "If prices fall, it will mean less in local property taxes, which could have an effect on services."
marlakay
(11,470 posts)Is they get bad for people after they are out of office and let a democrat take the fall.
I am so tired of our presidents cleaning up their messes!