Wednesday, September 27, 2017

Trump Tax Plan Calls for a "Tax on Taxes"; Screws New York, New Jersey and California Taxpayers


The first details of President Trump's tax "reform" are starting to leak from the White House.

While Trump will no doubt criss-cross the country proclaiming he is making large tax cuts, it is mostly a scam with simply new points of taxation. It is mostly a shifting of the tax burden.

One remarkable example of this is that Trump's plan will
call for a "tax on taxes." That is, at present via deductions, taxpayers do not have to pay taxes on the taxes they pay at the state and local level.  This includes a deduction for local real estate and personal property taxes as well as either state income taxes or general sales taxes.Trump is going to eliminate this deduction, known as the SALT  (state and local tax) deduction.

The Tax Policy Center reports that the "tax on taxes" will result in a tax inflow of $1.3 trillion to the federal government over the 10-year period of the plan.

Taxpayers in New York, New Jersey and California will be particularly hard hit as the state and local taxes in these states tend to be high. If Trump gets his way, taxpayers in these states will now be paying a tax on those taxes.

-RW

Also see: DRUDGE Trump Tax Cut Betrayal; Taxes Going Up

10 comments:

  1. But he's totally not a socialist people

    ReplyDelete
  2. But liberals in those states should be happy that they are sending more money to the federal government.

    ReplyDelete
    Replies
    1. In CA, this is going to hurt me A LOT. The lefties will harp about how unfair it is to them, but if they weren't hypocrites, they would be celebrating just as you say.

      Delete
    2. Leave California. I left there when I was 20 and ended up in Virginia.

      Delete
  3. New York, New Jersey and California vote democrat. Its about time the R's emulated the D's and rewarded their supporters and punished their enemies.

    ReplyDelete
  4. Dont you know the Idiocrat in Chief is an expert politician! What is there to worry about.

    ReplyDelete
  5. This is good because it will reduce support for big govt politicians.

    ReplyDelete
  6. This would guarantee him losing a second term. Property taxes and state income taxes are a large part of middle class itemized deductions. When taxpayers owe more without significant life changes they ask their accountants why and this policy change is one they would understand perfectly.

    ReplyDelete