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The newspaper floated a number today (without attribution) that actually emanated from the lips of our head clown;
The average home owner in NYC would lose $5,500; I am sure the number on LI would actually be higher.
SO WHAT!?! I will lose money also, but I don't want other States to subsidize us, just like I don't want to subsidize other States. It is time for Albany to come to terms with the sky-high local taxes. Maybe this will trigger a change for local taxes.
By the way, I have 0% clue how you make up the $5,500 number. We don't even know any details: if your tax bracket drops from 28% to 15%, the difference in this will more then make up the loss of tax deductions.
Right now I would say most people are in the 25% bracket in NYS (filing married): $75,301 to $151,900. If your state taxes are $15,000 you would lose $3,750 (25% x $15,000 - still not sure where the $5,500 comes from). Let's assume the 25% bracket becomes a 15% bracket and you make $100,000. Your income will rise by $10,000. Deduct $3,750 and you still get a nice $6,750 tax cut.
SO WHAT!?! I will lose money also,but I don't want other States to subsidize us, just like I don't want to subsidize other States. It is time for Albany to come to terms with the sky-high local taxes. Maybe this will trigger a change for local taxes.
By the way, I have 0% clue how you make up the $5,500 number. We don't even know any details: if your tax bracket drops from 28% to 15%, the difference in this will more then make up the loss of tax deductions.
Right now I would say most people are in the 25% bracket in NYS (filing married): $75,301 to $151,900. If your state taxes are $15,000 you would lose $3,750 (25% x $15,000 - still not sure where the $5,500 comes from). Let's assume the 25% bracket becomes a 15% bracket and you make $100,000. Your income will rise by $10,000. Deduct $3,750 and you still get a nice $6,750 tax cut.
NYS already does that
In addition, someone currently in the 28% tax bracket wont actually be paying 28% if they have a 401k, any itemized deductions, transit chek etc etc. Their federal tax margin rate is 28% - but their effective rate will be lower than 28%. The new rates, which dramatically reduce all those, will be actual. The difference in savings, if any, is smaller than it appears for many people.
In addition, someone currently in the 28% tax bracket wont actually be paying 28% if they have a 401k, any itemized deductions, transit chek etc etc. Their federal tax margin rate is 28% - but their effective rate will be lower than 28%. The new rates, which dramatically reduce all those, will be actual. The difference in savings, if any, is smaller than it appears for many people.
I would guess that most people in the 28% bracket are net in the 25% bracket (hence my example using the 25% bracket). All of this depends the new limits for the brackets
But I'm speculating. That's why it's foolish to burn the Trump administration without knowing details. Sure, people in high tax areas will get less of a tax cut. But if you think about it: how much sense does it make to deduct local taxes from federal taxes anyway?
The $5,500 loss of tax effect is a number the Chuck Schumer (the crying clown) came up with that was quoted (without attribution today) in the daily news. In other words; you are going to pay more federal taxes and be effectively double taxed.
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