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Republican Tax Scam Hits Millions Who Can't Deduct State and Local Taxes
The Republican tax scam has been discussed repeatedly at SmartDissent.com and on our Twitter and Facebook accounts. This post touches on the impacts of the GOP eliminating deductions for state and local taxes, which will cause the tax bills for millions of Americans to INCREASE.
The law limited the amount of state and local taxes -- or SALT -- that taxpayers can write off, a change most acutely felt in high-tax states including New York, New Jersey, Maryland and California, where tax bills can easily exceed the threshold.
About 10.9 million people are losing out on one of their most prized tax breaks -- the deduction for state and local taxes.
That’s the number of people the Treasury Inspector General for Tax Administration estimateshad tax bills above the $10,000 deduction cap included in the 2017 tax overhaul.
These taxpayers collectively have $323 billion in state and local tax bills that can’t be deducted, according to the report released Wednesday [2/27/19].
Certain states tried to step in to address the issue and Republicans quickly blocked them. Seriously.
The report found that the IRS worked quickly to issue guidance to block high-tax states’ efforts to pass laws that would allow their taxpayers to avoid the SALT limitation. L egislatures in New York, New Jersey and Connecticut were all considering bills to create workarounds to the SALT cap, which were invalidated by the IRS guidance, which the report said Treasury Secretary Steven Mnuchin reviewed.
Eight governors have formed a coalition to fight the SALT cap, but the outlook in Congress isn’t favorable. Senate Republicans have already said they will not revisit the issue.
Of course they won't.... their constituents are the uber wealthy and large corporations, not individuals who pay taxes.