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It's cute (and clueless) that right-wingers think SALT is for the rich.
Reality is SALT by and large benefits the middle class.
The problem is we have a LOT of right-wingers living in poor flyover states who think middle class is a household making $80k and living in a house worth $350k.
Reality is, in coastal cities, middle class is a household making less than $200k and living in a house they bought for $1+ million. These are the middle class families most hurt by Trump's SALT bonehead decision.
I can't help but giggle at the laughable following post that attempts to contradict what the NYT themselves have admitted.
Quote:
Originally Posted by beb0p
It's cute (and clueless) that right-wingers think SALT is for the rich.
Reality is SALT by and large benefits the middle class.
The problem is we have a LOT of right-wingers living in poor flyover states who think middle class is a household making $80k and living in a house worth $350k.
Reality is, in coastal cities, middle class is a household making less than $200k and living in a house they bought for $1+ million. These are the middle class families most hurt by Trump's SALT bonehead decision.
.
raising the SALT cap to help those below the top 10% of earners may very well make sense. But there can be no serious claim that "SALT by and large benefits the middle class"
Yep, Schumer and the other usual suspects started squealing immediately about "working class" families that are now "struggling" when Trump pushed through the SaLT cap.
Schumer is lying.
If Schumer gets his way the following will get the tax benefits:
Bottom 20% gets 0% of benefits.
Middle 60% gets 4% of benefits with the average household
In the middle 60% saving $27 in taxes.
The top 1% gets 57% of the benefits.
The top 0.1% gets 25% of the benefits with an average savings of $145,000 per household in that demographic.
Democrats are blatantly pushing a pro rich tax policy and lying by saying it is for the middle class. Even AOC has the integrity to say it is simply a way to protect the rich.
These stats come from the left leaning Brookings Institute.
This is probably the most important paragraph in the article:
This SALT tax cap has both liberals AND republicans arguing against their core values, because in this particular instance, their core values are harmful to their own constituents. But it shows a complete lack of consistency on both of their parts.
As the article states, there are legitimate reasons to remove the cap. Reasons that align with conservative core values. Conservatives believe that the money you earn is YOUR money.
They believe that charitable donations should not be taxed. Why? Because the giver is diverting some of his income to a worthy cause. In essence, part of his work day is donated to that worthy cause rather than himself, so why should he/she be taxed on work that he is doing for charity rather than himself? That makes sense to most conservatives, doesn't it.
Conservatives also believe that if the federal government is taking 35% of someones paycheck, that means that one out of every 3 days a person works, he is working for the government, not for himself. If, as a conservative, you believe that the money you earn should be YOUR money, then this is a reasonable belief.
So likewise, if your state is taking $100k out of your paycheck, then that is not truly your money. So for the federal government to tax that $100k, which is money that the worker never sees as income, then the federal government it taxing people on money that is not their own. Just as if they taxed them on $100K that was donated to charity.
Does a conservative really want the federal government to tax people on money that was taken from them, to be redistributed to other people? That doesn't sound like true conservative core values to me.
The flaw in your analysis is that the tax payer is also the beneficiary.
Subsidizing a wealthy person's taxes in a high-tax state is a transfer of wealth from the poor to the rich.
This is probably the most important paragraph in the article:
This SALT tax cap has both liberals AND republicans arguing against their core values, because in this particular instance, their core values are harmful to their own constituents. But it shows a complete lack of consistency on both of their parts.
As the article states, there are legitimate reasons to remove the cap. Reasons that align with conservative core values. Conservatives believe that the money you earn is YOUR money.
They believe that charitable donations should not be taxed. Why? Because the giver is diverting some of his income to a worthy cause. In essence, part of his work day is donated to that worthy cause rather than himself, so why should he/she be taxed on work that he is doing for charity rather than himself? That makes sense to most conservatives, doesn't it.
Conservatives also believe that if the federal government is taking 35% of someones paycheck, that means that one out of every 3 days a person works, he is working for the government, not for himself. If, as a conservative, you believe that the money you earn should be YOUR money, then this is a reasonable belief.
So likewise, if your state is taking $100k out of your paycheck, then that is not truly your money. So for the federal government to tax that $100k, which is money that the worker never sees as income, then the federal government it taxing people on money that is not their own. Just as if they taxed them on $100K that was donated to charity.
Does a conservative really want the federal government to tax people on money that was taken from them, to be redistributed to other people? That doesn't sound like true conservative core values to me.
Well, I believe that the SALT deduction has been used to allow blue states to raise taxes that benefit their own people while making the rest of us pay for it.
The flaw in your analysis is that the tax payer is also the beneficiary.
Subsidizing a wealthy person's taxes in a high-tax state is a transfer of wealth from the poor to the rich.
Quote:
Originally Posted by katygirl68
Well, I believe that the SALT deduction has been used to allow blue states to raise taxes that benefit their own people while making the rest of us pay for it.
You guys make a good argument against the redistribution of federal dollars between states. As a NJ taxpayer, even before the SALT tax cap, I was still sending in $2.00 to the federal government for which only $1.00 came back to my state. While other states are getting back $2.00 for every $1.00 their tax payers send to the federal government.
If it is your argument that states should not be supporting other states, well then, we are all in agreement. That is something I can get behind, 100%. After all, why on ly fix this broken system half way? Right?
....Or, is that something you only believe in when it works in your favor?
Well, I believe that the SALT deduction has been used to allow blue states to raise taxes that benefit their own people while making the rest of us pay for it.
This right here^ The states themselves talk openly about it.
Last edited by snebarekim; 05-08-2021 at 09:26 AM..
You guys make a good argument against the redistribution of federal dollars between states. As a NJ taxpayer, even before the SALT tax cap, I was still sending in $2.00 to the federal government for which only $1.00 came back to my state. While other states are getting back $2.00 for every $1.00 their tax payers send to the federal government.
That claim comes up often, and somebody usually justs posts a link of how much each states pay in fed income tax, and how much in fed $$ go to this states, and it then gets ratioed.
Please show, in detail, exactly how that disparity is calculated.
Not just numbers being presented, but how the numbers are come to.
I am particularly interested in how the fed $$ into a state is defined and calculated.
I am quite curious.
Last edited by snebarekim; 05-08-2021 at 09:45 AM..
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