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It is going to be painful....add in the personal exemption that was eliminated...a family of 4 loses and additional $16,200 right there. Doubling the standard deduction won't do it for most people...even with the new child credit.
The marginal rates went down though. The only way to know for sure is to do the math.
Sounds like smoke and mirrors from a couple of guys hoping for another term.
How about this, why don't you try to lower taxes and expenses in NY before trying to pin it on the feds. Mic drop.
Federally everyone should pay the same taxes, and yes, some locales will get more benefits from those taxes than others.
But what we pay locally has nothing to do with that and just because my taxes are high where I live shouldn’t mean I get a deduction for voting in tax and spend government officials.
Unbelievable, can’t make this stuff up. Now politicians are crying wolf because we pay to much in taxes and blame Washington instead of going after the real reason!!
We can’t win out here folks.
For once, I agree with you. Trump is absolutely appalling in every way, and I get it he's doing this to punish the states that didn't vote for him. But I agree he's not to blame for NY's bloated taxes. This got set into stone decades before he came around.
The sacred homeowner tax break wasn't so sacred after all, and it was inevitable that a solid GOP Congress would be looking for clawbacks at the expense of blue states. People should wise up and not expect things they benefit from would continue forever.
A homeowner who struggles with this change is obviously not a good fit for NY. The tax problem is intractable from what I can see.
This only hurts places similar to LI.
The majority of the country pays far less than 10k a year in property taxes. Probably less than 5k a year on average. So generally speaking, if you can afford 10k or more per year in taxes, this shouldn't be a big deal.
1) whatever your opinion on the high rate of NY/LI taxes, this change in the tax law amounts to double taxation. How can you be ok with this? I get that some of you like that it punishes high tax areas and you feel it is deserved. With this law, we are paying federal taxes on some of the tax money we send to NY and local government.
2) desireable areas will never have low taxes. Desireable areas have high real estate value...this makes services (salaries) cost more as the workers have to live here. Now, some % of our local taxes are due to corruption and waste. We can debate what %. But LI will never have low taxes.
This only hurts places similar to LI.
The majority of the country pays far less than 10k a year in property taxes. Probably less than 5k a year on average. So generally speaking, if you can afford 10k or more per year in taxes, this shouldn't be a big deal.
Look - just because you can afford a $200 hooker once a week all year long, that doesn’t mean you should do it. Especially if she’s strapping on and turning you around week after week. Not “you” in the literal sense...but you get the point.
1) whatever your opinion on the high rate of NY/LI taxes, this change in the tax law amounts to double taxation. How can you be ok with this? I get that some of you like that it punishes high tax areas and you feel it is deserved. With this law, we are paying federal taxes on some of the tax money we send to NY and local government.
2) desireable areas will never have low taxes. Desireable areas have high real estate value...this makes services (salaries) cost more as the workers have to live here. Now, some % of our local taxes are due to corruption and waste. We can debate what %. But LI will never have low taxes.
1) How is it double taxation?
What you are seeing is less subsidization. That's all. NY's greed and incompetence has been exposed.
If you were a renter you wouldn't get the property tax deduction. Isn't that discriminatory?
SALT isn't removed, just reduced.
As I said before, if you are making $150K a year and able to deduct $40K+ for SALT, plus a bunch for mortgage interest you would be paying little net federal income tax, possibly as little as someone making $80K with no deductions.
As the Democrats are fond of saying, everyone needs to pay their fair share. As a bonus, everyone's marginal rates go down.
2) NY spends more in instructor salary + benefits per student than 40 states spend per pupil OVERALL (which also includes general admin, student support, etc.). NY spends 15% more per student than the next state.
How is this "desirable"? NY is ranked ninth as far as school quality.
Oh, and K-12 achievement is ranked BELOW the national average. Yes, I'm sure most schools on LI perform better than the NYS average, but the taxes are higher still. You shouldn't need to pay the equivalent of private school tuition for "good" public schools.
Where this all hurts is that NY is clearly getting shafted, and all in a single year. What should have happened was that SALT reductions were phased in over say 5 years to help soften the blow, perhaps capping first at say $30K and then reducing it $5K a year, and also phasing in the marginal rate reductions.
People on Long Island who believe it's OK to pay $15K in annual property taxes and $600K for a 50 year old hi-ranch on a quarter acre are the insane ones. Travel around the country and you'll see how much more you get for your money. Many of those places are also "desirable".
There needs to be a reckoning, but I fear it will never happen. The whole LI economy is essentially a bubble built on NYC employment and generous public sector benefits.
Last edited by markjames68; 01-10-2019 at 11:38 AM..
This only hurts places similar to LI.
The majority of the country pays far less than 10k a year in property taxes. Probably less than 5k a year on average. So generally speaking, if you can afford 10k or more per year in taxes, this shouldn't be a big deal.
It's not just property taxes. SALT = state and local taxes.
So state income taxes + property taxes.
If your property taxes are 5600 and your state income taxes are 6000, you are being affected by the limit. More comes into play...does this coupled with the elimination of exemptions mean you will use the standard deduction now instead of itemizing? What does that do to tour taxable income, even if marginal rates have been dropped a bit, you may pay more.
There are a lot of factors at play. But I've met folks on LI who think the 10k thing applies to just property taxes...and if their taxes are 11k, they are minimally affected...and that's not true.
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