The House bill would hurt middle class tax payers by limiting their deductions for state and local taxes…..
State and local lawmakers are afraid that because of the law?
There will be pressure on them to lower the very taxes that pay for services provided by state and local governments…
The House bill seems aimed at INCREASING taxes to be paid by middle class Americans…THAT is NOT a tax cut…
A tax plan approved by the House of Representatives on Thursday would sharply curtail a federal deduction that millions of Americans can now claim for tax payments to state, county, city and town governments.
Ending that deduction, the local leaders say, could make their taxpayers, especially in high-tax communities, less likely to support future local tax increases or even tolerate local taxes at present levels.
The proposed repeal of the state and local tax (SALT) deduction is part of an “assault on local governments” by Republicans in Washington, said Elizabeth Kautz, the Republican mayor of Burnsville, Minnesota, near Minneapolis.
“My hope is that we look at being thoughtful about what we’re doing and not ram something through just to get something done before the year is out,” Kautz said of the plan being rushed through Congress by her own party.
In the United States, local governments run schools, operate police and fire departments and maintain streets, parks and libraries, among other essential services. The federal government’s role at that level is limited.
Cities, towns, counties and states collect their own property, sales and income taxes. Under existing law, payments of those taxes can be deducted, or subtracted from federal taxable income, lowering the amount of federal tax due.
The House tax bill just approved would eliminate the deduction for individuals and families of state and local income and sales tax, while capping property tax deductions at $10,000…..Share on Facebook