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