Canyon Lake Agbu94 said:

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the most cool guy said:

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I just paid $34,000 in property taxes a week ago and I only get to deduct $10k. It would be really great if we could get rid of this stupid cap. The SALT deduction does not disproportionately benefit Texans, that is for sure. Our property taxes are so ****ing high we're actually paying more than many people elsewhere pay in state income tax.

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Technically, if you account for the general sales tax that is included in that $10k limit, even less than the capped amount comes from your substantial property taxes. These state property taxes need to be reined in. $34,000.00 seems crazy, even if you doubled up payments in one year.

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It's a brag, you would have live in a multimillion dollar house to have a property tax bill that high.

Goes to show most people still support high taxes becuase it's somebody else paying it.

Lived in Harris County for almost 40 years and sold our home in 2021. Tax rates are way over $2.00 per $100 valuation by the time you add MUD, HOA, EMS, etc. Also the valuation goes up every year. My son purchased a home recently and in some areas the total tax assessment was over $3.00 and pushing $3.50. State and local taxes are rising faster than the National debt. And then you add the dramatic rise of home insurance over the past 10 years.

The SALT cap was an increase in taxes for the middle class and a tax cut for the upper class.

High earners get around the SALT cap with pass-through entity taxes in their partnership interests. The middle class that pays more than $10k in SALT, but isn't wealthy enough to own partnership interests electing into PTET regimes, get screwed.

Brother Shamus said:

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Goes to show most people still support high taxes becuase it's somebody else paying it.

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I'd say it's more like I don't think it's fair that people want a tax break simply because they own very expensive real estate, while those who don't get no such break. Why should I pay more in federal income tax than the guy struggling to pay for the mansion that he knew was going to have high property taxes even if we earn the same amount of money? How about we just lower the tax rate?

1939 said:

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Brother Shamus said:

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Goes to show most people still support high taxes becuase it's somebody else paying it.

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I'd say it's more like I don't think it's fair that people want a tax break simply because they own very expensive real estate, while those who don't get no such break. Why should I pay more in federal income tax than the guy struggling to pay for the mansion that he knew was going to have high property taxes even if we earn the same amount of money? How about we just lower the tax rate?

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I feel it's not right to charge a tax on the income earned to pay another tax. So if I earn $100K and pay $25K in income tax…and then have to use $10K of that remaining $75K to pay another tax….i don't feel like I should have to pay income tax on the portion that was used to pay the property tax. That double taxation is what SALT attempts to eliminate. Trying to say that some amount of double taxation is okay as long as it only affects folks wealthier than me just feels like flat out jealous socialism.

1939 said:

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Brother Shamus said:

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Goes to show most people still support high taxes becuase it's somebody else paying it.

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I'd say it's more like I don't think it's fair that people want a tax break simply because they own very expensive real estate, while those who don't get no such break. Why should I pay more in federal income tax than the guy struggling to pay for the mansion that he knew was going to have high property taxes even if we earn the same amount of money? How about we just lower the tax rate?

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Look the wealthy are really the only ones currently getting hosed with fed income taxes. Most conservatives want a flat tax and that is considered to be the gold standard of fairness. By most accounts the flat tax rate will be around 15%.

A family of four that contributes to their IRA has to earn more than $275k annually to exceed that 15% tax rate. And only 5% of US households make more than $275k annually.

95% of Americans are already being treated fairly from a fed income tax perspective when compared to those truly footing the fed tax bill. Almost all tax relief for that top 5% is necessary until they are down near a 15% net fed income tax rate.

I didn't even notice fed income taxes between $250K and $400k. Once I hit $400k, it was like every deduction went away and I was paying through the nose.

SALT should go away entirely. It is 100% shifting federal tax burden between states. That's all it accomplishes in the end. Pure BS. If they want to give a federal tax break, lower the rates. Simple.

The vast majority of folks….even those that post on this forum….have no idea about how deductions and exemptions quickly phase out as income increases….all while marginal rates increase. There is a point where you actually only keep about 25% of each additional dollar earned while you are in the "phase out" brackets. Not a huge impact on the very wealthy….hut a huge impact on the two professional income comfortable.

HarleySpoon said:

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The vast majority of folks….even those that post on this forum….have no idea about how deductions and exemptions quickly phase out as income increases….all while marginal rates increase. There is a point where you actually only keep about 25% of each additional dollar earned while you are in the "phase out" brackets. Not a huge impact on the very wealthy….hut a huge impact on the two professional income comfortable.

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Nobody here is arguing that taxes are not high. The answer to high taxes is cutting the tax rate.

Let's say 2 people each make $200k per year

One of these 2 lives in an expensive home and pays $30k in property tax. The other lives in a moderate home and pays $9,000.

Why should the guy that lives in the big house get to deduct $30k off his federal income taxable income and the other guy only $9k?

It's makes zero sense, just like your argument about double taxation. all it does is allow states to raise their taxes and essentially steal those dollars from the federal government by shifting the tax burden. The fact that the tax rate is high for higher earners makes no difference in this case.

I have a feeling you don't like the salt tax because it caps your deduction, not because it's good policy.

The tax code is ******ed and designed to create as big a govt employment and enforcement req as possible, along with loopholes.

They could make a flat tax or consumption tax for same revenue with virtually no enforcement necessary

1939 said:

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HarleySpoon said:

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The vast majority of folks….even those that post on this forum….have no idea about how deductions and exemptions quickly phase out as income increases….all while marginal rates increase. There is a point where you actually only keep about 25% of each additional dollar earned while you are in the "phase out" brackets. Not a huge impact on the very wealthy….hut a huge impact on the two professional income comfortable.

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Nobody here is arguing that taxes are not high. The answer to high taxes is cutting the tax rate.

Let's say 2 people each make $200k per year

One of these 2 lives in an expensive home and pays $30k in property tax. The other lives in a moderate home and pays $9,000.

Why should the guy that lives in the big house get to deduct $30k off his federal income taxable income and the other guy only $9k?

It's makes zero sense, just like your argument about double taxation. all it does is allow states to raise their taxes and essentially steal those dollars from the federal government by shifting the tax burden. The fact that the tax rate is high for higher earners makes no difference in this case.

I have a feeling you don't like the salt tax because it caps your deduction, not because it's good policy.

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The solution is that everyone pays the exact same rate on their first to their last dollar and then all of us as citizens with equal skin in the game can vote to determine what that rate is.

When do you expect that this will happen? When 95% of Americans are largely detached from the serious consequences of our current progressive taxation theft scheme.

Do you believe that most conservatives even on this forum give a crap about the plights of that top 5%? They will gladly lower their effective tax rate from 10 to 8% long before the lower the top tax brackets.

That is the beauty of a progressive tax structure, those getting hosed do not have the votes to resist.