It looks like SALT deduction limit is the reason why Republicans lost in lot of urban areas. Democrats have been talking about restoring that limit along with a few other changes. By the way, I did not know that as per the current law the limit is only till 2025; after that it’s back to unlimited deductions.
https://www.wsj.com/articles/what-a-democratic-house-would-mean-for-your-taxes-1541163601
Excerpt: One fraught area for Democrats will be the deduction for state and local taxes, which the GOP law capped at $10,000, though that limit is set to expire after 2025. Combined with the higher standard deduction that was part of the tax law, that cap hits hardest in states such as New York, New Jersey and California, where property and income taxes often exceed $10,000.
Restoring SALT deduction without hiking taxes for corporations will further increase deficit. But if you put back more corp taxes Senate won’t go along. So no, don’t get your hopes up for the next 2 years at least.
They can sort of meet in the middle and make it $25000 and increase corp tax to 23%. In fact limit of $25000 would still save lot of money for them and the big shots above that probably won’t care much.
There shouldn’t be any SALT deduction limit like before.
$25,000 limit is better than $10,000 but still much worse than before.
I am speaking for my own interest only here (ie selfish) but I got stressed out when I calculated 2018 tax to pay estimate tax for this year (to my surprise, my tax increased with Trump tax reform).
Yes, will happen in 6 years. Hopefully sooner. But since the AMT limit will also reset, I won’t be able to benefit from it (just like earlier) until my retirement.
OK. I thought that House bill passed Senate as well. Didn’t pay enough attention there.
The tax cut was really bad policy. Corps don’t need that much of a break, and many individual payers in expensive states end up paying more. It also destroys the housing market in the Northeast, a drag on the economy.
Tax writing was not the reason for the loss, at least according to Trump. Is it true that candidates who embrace Trump got more favorable election result?
“President Donald Trump blamed Roskam and Paulsen’s losses on their decisions to distance themselves from him. “Peter Roskam didn’t want the embrace, Erik Paulsen didn’t want the embrace,” Trump said Wednesday during a press conference, where he listed other Republicans who were defeated because he said they didn’t want his support.”
This is where voter ignorance is a thing. 99% of those peoole will end up paying the same or lower taxes due to the expansion of the child tax credit. They looked at it in a vacuum and haven’t even filed taxes under the new law yet. Of course the media had millions of articles about SALT limit and rarely mentioned expansion of the child tax credit. Their strategy worked, since people don’t read beyond headlines.
I am fully aware of all changes you mentioned here. Yet, my tax went up this year. That’s what matters most to me…(still sounds selfish). I am not talking from majority people’s perspective.
In fact limit of $25000 would still save lot of money for them and the big shots above that probably won’t care much.
but i am ignorant, and didn’t simulate tax filing.