Drudge Retort: The Other Side of the News
Wednesday, October 25, 2017

One of the most common refrains against corporate taxes and taxing dividend income is that it is "double taxed" taxed at the corporate level and then at the personal income level.

Now in a stunnningly hypocritical about face they want to remove the exemption for State and local taxes from the federal income tax code. They are fighting hard to make sure working class Americans whose income comes from labor get double taxed and possibly triple taxed at federal, state, and local levels.

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But but but tax cuts will create $4,000 per year in magical extra income for the AVERAGE family. $4,000,000,000 for Trump and dick for 100,000 other families. So what if you get to pay taxes on income twice? ---- you, the billionaires that bought congress and the white house demand a return on their investment.

#1 | Posted by 726 at 2017-10-25 11:20 AM | Reply

BTW it is double tax on the middle class, which the GOP is cool with. It is only double tax on the 1% that is heinous. Why won't anyone think of the downtrodden billionaires?

#2 | Posted by 726 at 2017-10-25 11:22 AM | Reply

Just as it's disingenuous to claim dividends are double taxed, it's disingenuous to claim paying state and federal taxes is double taxation.

#3 | Posted by jpw at 2017-10-26 12:27 PM | Reply

My guess is that this deduction will remain for the middle class and will be phased out for the higher tax brackets once the tax bill comes out. The House will force this result since the GOP congresspeople from NY, NJ and CA will not vote for the budget reconciliation without some adjustment of this type.

#4 | Posted by Rightocenter at 2017-10-26 12:44 PM | Reply

#4 I hope you are right.

#5 | Posted by Gal_Tuesday at 2017-10-26 12:48 PM | Reply

My guess is that this deduction will remain for the middle class and will be phased out for the higher tax brackets

It already does. Google "itemized deduction limitation".

#6 | Posted by 726 at 2017-10-26 02:06 PM | Reply

#6

There you go. This is the only compromise that makes sense, SALT does help all the taxpayers in the states that have income taxes and according to early studies that I have seen, almost 80% of the clawback that eliminating this deduction would gain comes from the top 0.5%, who aren't going to feel it.

Now if they can only get rid of the carried interest exemption/favorable rates the outline would be close to revenue neutral. That, of course, would cause people like Warren Buffett, Bill Gates, Jeff Bezos, the Koch Bros. etc. to actually pay taxes on the money their investments earn every year, so I am not going to hold my breath

#7 | Posted by Rightocenter at 2017-10-26 02:15 PM | Reply

--they want to remove the exemption for State and local taxes from the federal income tax code.

Excellent. It's a benefit for the favored fifth paid for by the bottom 80 percent who don't itemize. If you're in favor of increasing progressivity in the tax code, you support it.

#8 | Posted by nullifidian at 2017-10-26 02:22 PM | Reply

#8

I think the "favored fifth" are going to be pissed if it goes away, which is why I think it will be eliminated for earners above $400K (just a guess) but kept for everyone else who itemizes.

#9 | Posted by Rightocenter at 2017-10-26 02:32 PM | Reply

8

It hurts me unfortunately. I write off property and state taxes currently.

#10 | Posted by eberly at 2017-10-26 02:33 PM | Reply

Ran some numbers on ST tax thing comparing OR to WA. When you add fed dollars sent to each ST plus state taxes collected...$12 difference in per capita spending. I'm interested to see what other states are like in comparison. But this, at least in the sample of WA and OR, seems to indicate state taxes replace federal spending requirements. Basically a 10% income tax in OR results in a 20% drop in federal spending in OR. State taxes should be exempted from federal taxes because the state taxes replace the services the fed would return to the state via redistribution.

#11 | Posted by gavaster at 2017-10-26 03:08 PM | Reply

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