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Re: The Tax Break for the Rich the Democrats Are Fighting to Keep

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@jimc91 wrote:
The deduction for state and local taxes benefits wealthy taxpayers in high-tax states like New York and New Jersey the most

 

by Brendan Kirby | Updated 17 Oct 2017 at 7:13 AM

 

READ MORE HERE:

 



Congratulations, @jimc91, you have hit the trifecta of FAKE NEWS so far today as you have used a FALSE INFORMATION CLIMATE CHANGE DENIAL BLOG, THE DAILY CALLER, and now, Laura "Heil Hitler" Ingraham's POLIZETTE.

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Re: The Tax Break for the Rich the Democrats Are Fighting to Keep

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The neoReopublicans want to eliminate the deduction for State and Local income because they claim it favors the rich. But if you LIMIT, rather than eliminate, the deduction to AGI less than $100,000, then you protect the income of 97% of all taxpayers.

 

Republicans will never accept that because it only benefits the BOTTOM 97% of taxpayers, and their entire "Reform"(sick) is intended to protect the incomes of the TOP 0.1%.

 

What we really need to do is eliminate the special consideration for unearned income from inheritence and investments - tax it all as income to the recepient. Then make it easier for farmers/small business to incorporate so their family farm will become immortal, just like any other corporation, and there'll never be a "death" of the farm, hence no "death tax".

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Re: The Tax Break for the Rich the Democrats Are Fighting to Keep

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@saworld said:

 

But they don't, now do they?

 

 

+++++++++++++++++++++++++++++++++++

 

That would include Chuck Schumer...

 

 

 

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Re: The Tax Break for the Rich the Democrats Are Fighting to Keep

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jimc91 wrote:  The deduction for state and local taxes benefits wealthy taxpayers in high-tax states like New York and New Jersey the most

Really dumb argument that only works on the math-challenged.  Taking away this deduction is obviously a partisan one targeted specifically against Blue states and will hurt the middle class in those states as well the wealthy. 

 

Blue states already pay more in federal taxes than they get back.  That's unlike Red states, who as a whole, are known as the "moocher" states.  Red states are living off of the disproportionately high taxes paid by their hated Blue-state brethen of ALL income levels.  (https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/ and many more)

 

If the GOP goal was to help the middle and lower classes, real tax "reform" would target the code to that goal and eliminate the preferences that are specifically enjoyed by the rich.   For example, the much lower and payroll-tax-exempt capital gains tax rate is more targeted and enjoyed by the wealthy.  Obviously the estate tax affects the very wealthy primarily and could be "reformed" to lower the base subject by it.  There's much more that could be done if the GOP cared one whit about the non-wealthy.  But they don't, now do they?

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The Tax Break for the Rich the Democrats Are Fighting to Keep

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The deduction for state and local taxes benefits wealthy taxpayers in high-tax states like New York and New Jersey the most

 

by Brendan Kirby | Updated 17 Oct 2017 at 7:13 AM

 

For a progressive, few tax breaks should offer a juicer target than the write-off taxpayers can take on the state and local income, sales, and property taxes that they pay.

 

The tax break costs the federal government a massive amount of money — a projected $1.3 trillion over the next 10 years, according to the non-partisan Tax Policy Center. And it primarily benefits upper-income taxpayers. According to the Tax Foundation, only 28 percent of taxpayers claim the deduction, and the top 1 percent of taxpayers claim a third of the benefit. Households with incomes less than 100,000 get only 10 percent of the deduction.

 

"Philosophically, it should be close to a no-brainer," said Marc Goldwein, vice president and policy director of the Committee for a Responsible Federal Budget.

 

Yet leading Democrats in Congress fiercely oppose eliminating this tax break for the wealthy as part of a tax reform package.

 

Senate Minority Leader Chuck Schumer (D-N.Y.) told The Buffalo News on Monday that eliminating the tax break would be a "non-starter."

 

House Minority Leader Nancy Pelosi (D-Calif.) tweeted last week: "50% of households that claim State & Local Tax deduction make under $100K — & now @SpeakerRyan wants to throw it away." (She did not mention that 90 percent of the benefits flow to houses with incomes over that threshold.)

 

Sen. Richard Blumenthal (D-Conn.) provided a clue for the opposition on the Left, complaining Monday on CNN that it would be "particularly impactful on my state of Connecticut, the Northeast, and many other states."

 

Indeed, Democratic politicians tend to oppose eliminating the deduction because it disproportionately benefits voters in Democratic strongholds — urban areas where property and local taxes are high. The higher the local tax burden, the greater the benefit to higher earners. The Tax Foundation reports that half of the benefits go to taxpayers in just six states — California, New York, New Jersey, Illinois, Texas, and Pennsylvania.

 

Republicans are eying the tax break as a way to pay for a reduction in federal personal income tax rates across the board. President Donald Trump will promote tax reform Tuesday during a speech at The Heritage Foundation.

 

Blue States Benefit the Most


Rachel Greszler, a research fellow in economics, budget and entitlements at the conservative think tank, said the benefits of the state and local tax deduction skew even more heavily to blue states when measured as a percentage of income. Residents of New York State write off 8.94 percent of adjusted gross income. That is the most of any state. New Jersey (8.53 percent), Connecticut (8.15 percent), California (7.73 percent), and Maryland (7.6 percent) round out the top five.

 

All of those states are Democratic strongholds with high local taxes and lots of upper-income residents. Meanwhile, the tax break is worth less than 2 percent of income in each of the bottom five states — Alaska, South Dakota, Wyoming, North Dakota and Tennessee. All of those states have modest state and local tax burdens. Greszler said taxpayers in Alaska effectively help foot the bill in New York.

 

READ MORE HERE:

 

++++++++++++++++++++++++++++++++++++

 

Chuck Schumer is a putz!

 

 

 

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