While the FOCs are busy touting that they are not going to raise taxes for anyone making under $400,000, many, if not most are ignoring the fact that they are trying to remove the SALT cap that President Trump put on the deductions for state and local taxes.
Let’s take a second to review the history. Originally, the idea was to completely eliminate the exemptions on state and local taxes. The reason, quite logically, they benefit the wealthy (people who have money and a lot of it!). Few of us little folks have much to deduct when it comes to state and local taxes. Nonetheless, they changed their mind. They decided to keep it, but put a cap of $10,000 on it. That allows the little guy to continue deducting it, but the rich and famous lost a big part of the deduction.
Now stop and consider. Just who is paying more than ten grand on local taxes. Two types, to be sure. Those who are rich and those who live in states, cities and counties that have a high tax rate; mostly the rich… people who own land in states that have big taxes.
So, ever since the law to put a cap on SALT, the rich have been howling at the moon. They would do other things, but there was nothing else to do. So, after spending a while howling at the moon, the dems decided to give them a break. They wanted to do away with the cap altogether, but that did not set well with most of us who don’t own a bunch of expensive property in states like New York or California or New Jersey. So now, as the dems love to do, they decided to propose a compromise, which is not a compromise at all. The last I heard, the new cap was 72 grand.
Sounds good, of course if you are one of those paying 72 grand on local taxes. As for me, I never got close to grossing an income of 72 grand. For folks like me, it looks very much like a tax break for the very rich.
And here the FOCs advertise that they are the party for the commoner. (Anyone out there know anyone paying 72 grand in taxes, total?)