opinion of Dems trying to increase the SALT cap

[dead0man]

CNBC link

[Okay, maybe Mike Johnson is a competent parliamentarian.]

Good, although I also understand the arguments against it. It helps middle-class people in rich states, which isn't really the same thing as rich people.

[Intell]

Good, although I also understand the arguments against it. It helps middle-class people in rich states, which isn't really the same thing as rich people.

Middle class handouts are bad.

[brucejoel99]

FF's, given that literally the only thing which the cap on SALT deductions did is raise taxes on people who already live in states with high taxes.

[Okay, maybe Mike Johnson is a competent parliamentarian.]

Good, although I also understand the arguments against it. It helps middle-class people in rich states, which isn't really the same thing as rich people.

Middle class handouts are bad.

Handouts in general are good unless proven otherwise, actually.

[Antonio the Sixth]

Honestly, option 6. It is kinda wonky to tax people twice on the same income, but iirc it really mostly just affect upper- and upper-middle-class people, who can stand to pay a bit more. And as a supporter of a stronger economic role for the federal government, forcing states to adapt to federal policy instead of the other way around might be beneficial down the line.

Of course, using it to pay for a massive tax giveaway for the obscenely-rich was a despicable move, but I'd rather just keep the additional revenue from SALT and reverse the rest of the bill.

[politicallefty]

Republicans only decreased the cap to spite mostly Democratic states. I don't think it should be eliminated, however I do think the cap should be increased. This issue has little to do with rich vs. poor. It has everything to do with how much state and local governments levy certain taxes. The Trump tax increase has struck into the middle class.

[dead0man]

Good, although I also understand the arguments against it. It helps middle-class people in rich states, which isn't really the same thing as rich people.

from the Tax Foundation

Before the TCJA, 91 percent of the benefit of the state and local taxes paid deduction was claimed by those with income above $100,000. Limiting the deduction, therefore, is progressive. Its impact is mostly limited to high-income households.



For individuals with income between $100,000 and $200,000, JCT estimates that the dollar benefit of the SALT deduction falls from $28 billion in 2017 to $7 billion in 2018. For those with income between $200,000 and $500,000, it falls from $26 billion to $7.1 billion. For those with income between $500,000 and $1,000,000, the benefit of the deduction falls from $11.5 billion to $2.2 billion. It falls from $34 billion to 1.3 billion for those with income above $1,000,000.

Contrary to popular arguments, the SALT cap does not disproportionately impact middle-income taxpayers. The benefits concentrate above $100,000 in income, which some have labeled as “middle-income.” However, these individuals are in approximately the top 20 percent of taxpayers, outside the traditional definition of middle-income. In 2016, the top 25 percent of taxpayers had incomes above $81,000. The top 10 percent of taxpayers had incomes above $140,000. The top 5 percent of taxpayers had income above $200,000.[17]  Very few middle-income taxpayers claimed the deduction before the TCJA, meaning they are not impacted by the new cap.

[Antonio the Sixth]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

[politicallefty]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

[dead0man]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

and this only helps the rich/upper middle class home owners there.  It's a handout to people with a lot of money who CHOOSE to live in high tax states/areas.  You can keep telling each other that some middle class people are helped too if you want, but it's not going to make these tax breaks for rich people look any better to the rest of us.

[Intell]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

Oh Boo Hoo, you can live in LA on 45k, there is no need to give hand outs for privileged people that earn $100 000 or for that matter $75k also. If in CA you can move out and live in Oakland, in California there's hispanic neighbourhoods a plenty.

Can't believe I'm in agreement with dead0man but here I am, the only other thing we agree on issues in economics is probably like zoning and rent control.

[dead0man]

Can't believe I'm in agreement with dead0man but here I am, the only other thing we agree on issues in economics is probably like zoning and rent control.

we shouldn't have any of either?

[Intell]

Can't believe I'm in agreement with dead0man but here I am, the only other thing we agree on issues in economics is probably like zoning and rent control.

we shouldn't have any of either?

rent control tends to be bad solution, I'm much more a fan on mass scale public housing, a policy proven to work in other countries, rather than rent control which distorts prices and does not necessarily help the poor.

We should have zoning policy, but we should really do away without single-houses zoning in major cities, and rather allow for more apartment and triplexes+ building in residential areas.

[politicallefty]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

Oh Boo Hoo, you can live in LA on 45k, there is no need to give hand outs for privileged people that earn $100 000 or for that matter $75k also. If in CA you can move out and live in Oakland, in California there's hispanic neighbourhoods a plenty.

Can't believe I'm in agreement with dead0man but here I am, the only other thing we agree on issues in economics is probably like zoning and rent control.

You have no idea what it is to live in many cities in this country. Rent prices are skyrocketing everywhere. So is almost everything else and our government continues to fail us.

You're obviously aware of the problems or you wouldn't have mentioned things like rent control and zoning. Rent control seems to accomplish little in terms of reducing overall rates. Zoning restrictions should be severely curtailed. I think California should wipe out local control over zoning altogether. It's a severe crisis that requires severe action.

[dead0man]

Rent prices are skyrocketing everywhere.

cite?

So is almost everything else

cite?

[Antonio the Sixth]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

I literally live in Los Angeles. 70% of my income goes into rent. Try again.

[Intell]

It's not often that I agree with Dead0 over Nathan, but I think I do here.

Only if you don't know what the cost of living is in many major cities in this country.

Oh Boo Hoo, you can live in LA on 45k, there is no need to give hand outs for privileged people that earn $100 000 or for that matter $75k also. If in CA you can move out and live in Oakland, in California there's hispanic neighbourhoods a plenty.

Can't believe I'm in agreement with dead0man but here I am, the only other thing we agree on issues in economics is probably like zoning and rent control.

You have no idea what it is to live in many cities in this country. Rent prices are skyrocketing everywhere. So is almost everything else and our government continues to fail us.

You're obviously aware of the problems or you wouldn't have mentioned things like rent control and zoning. Rent control seems to accomplish little in terms of reducing overall rates. Zoning restrictions should be severely curtailed. I think California should wipe out local control over zoning altogether. It's a severe crisis that requires severe action.

I lived in LA on 50k (fairly well off may say so), it is not that hard to, I also have lived in Sydney, one of the most expensive cities to live in on 55k. SALT deductions only help people in the middle class (or wealthier), who don't need to own homes they can live in outer suburbs or poorer neighbourhoods if they wish to.  The privileged middle class do not need handouts.

[Orser67]

Voted bad, though I might actually support raising the cap to a moderate degree; my issue is that I think completely eliminating it (as Suozzi's bill would do) is a bad idea.