As members of Congress from different parties, we disagree on many issues.
However, we both support the kind of tax reform that would create jobs, simplify the tax code and strengthen the middle class. And, there’s no disagreement between us that state and local tax deductions can neither be eliminated nor modified in any way when it comes to local residents filing federal income taxes, as the administration has proposed in its tax reform plan and that Congress is preparing to pass.
We can’t let this happen!
Whether you’re a Republican or a Democrat, elected officials must understand that ending or even tinkering with the deductions would be bad for New York, bad for Long Island, and bad for all of our constituents.
It is patently unfair, and it amounts to a tax increase for hundreds of thousands of families in each of our districts.
As currently constructed, the House version would cap property tax deductions at $10,000 while eliminating all state and local income tax deductions.
The Senate version is even more draconian, with all state and local tax deductions wiped out entirely. While the House plan doesn’t go quite as far as the Senate, nearly every middle-class family on Long Island would get hurt financially.
New York has some of the highest state and local taxes in the nation. And our state is the largest net donor to the federal government.
According to a report from the Rockefeller Institute of Government, a public policy think tank, New York sends $48 billion more to the federal government than it gets back — more than any other state. Much of that $48 billion helps subsidize other states through federal programs.
Also, a study by the research institute of the Long Island Association, the region’s largest business group, finds that scrapping the deductions could cost Long Island taxpayers up to $2.5 billion a year. And an estimate by the state Department of Taxation and Finance concludes that close to 950,000 Long Islanders would be hurt if state and local tax deductions are eliminated.
Our agreement on tax reform goes beyond protecting the state and local tax deduction. We favor corporate tax reform to create jobs in America and to capture corporate profits that companies are keeping offshore.
We believe that any tax reform plan must include tax cuts for the struggling middle class. The last time Congress came together to overhaul our tax code was 1986. Since then, the code has become voluminous and, in turn, more difficult for average Americans to comprehend.
We must simplify it.
In a still-recovering economy, a single misguided action can lead to a series of problems, including an economic slowdown.
The actions being proposed would be a punch to the gut for our struggling middle class and the hard-working families of our districts, many of who are still reeling from the economic meltdown that began in the last decade.
We’ve been told by those who’ve written this bill that the middle class will thrive under this plan. You know, and we know, that’s not true for New York’s middle class.
As your representatives, we’re standing here regardless of party labels to say that Long Island families deserve to have the state and local tax deduction preserved in its entirety and be able to keep what they have rightfully earned.
It’s bigger than just local. Should Senate Republican Middle Class Tax Hike plan get enacted in its current form, my betting is nation will tip into recession in 2019 when tax hikes come home to roost.
Gouge both the east and west coast, and others in between, with No Personal Exemptions and Elimination of “SALT” and the cumulative effect is humongous.
I live in Illinois in a $280K house, and the math shows my taxes go up roughly $5K per year versus current tax law. Could lease a desperately needed new car plus pay the insurance on it for a year, or nicely furnish a bedroom (that has nothing in it now) with that kind of money. Oh well, guess cable tv will go instead, and dining out, etc. And then no new car or furnished bedroom either.
Not a good “trickle down and then all around effect” when one adds it up with the impacts on countless other families, and then to and through the economy. Will prove to be Very Bad Deal For the Country should things move ahead as presently laid out by U.S. Senate Republicans. And doing the math that adds up to that seemingly inevitable outcome is really rather simple.
Would be better to leave things alone rather than to royally mess things up. Oh well, some people sure are selfish. And at the expense and to the detriment of very many. Not Good!
How much more might you get to pay under the Senate Republican proposed income tax plan? Are you so lucky ? too?
Is relatively easy to ballpark calculate. I’ll use a simple illustration, but always consult with a capable tax calculating person if you are not sure how to calculate how you or your family may (err will) be impacted. Then plan accordingly for your future budgeting/spending, what political party you next vote for, etc.
Anyway, here is my illustration: A single person with $65K taxable income in 25% federal tax bracket and 6% state bracket (perhaps use about 6.5% in New York? and about 9% in California?) with $10K residence mortgage interest plus $8K residence property taxes plus $4K state income taxes plus $2K charitable contributions plus $4K personal federal exemption (since it goes away) equals $28K. $28K minus $12K federal standard deduction equals $16K of deductions that go away times 31% equals about $5K more to pay in combined federal and state income taxes. But wait. It is ? not quite that bad. ? For one saves roughly $900 by being in lower 12% federal bracket on a portion of the hard earned income. Yippee! Hurray! Harrah!
But is still a combined roughly $4K increase of federal and state income taxes. Is really quite some middle class income tax cut! The numbers though in this illustrative example just don’t add up to being a cut though.
Hmmm. That is not what the vast majority of U.S. Republican congressional representatives are telling us though. Some representatives they are!!! ? But for whose interest? They sure as heck aren’t representing me. Rather the plans result in a “picking of the pockets” dry.
Work the numbers yourself as they may relate to your situation though and see. I hope they work out better.
I think in my case though that Non-Republican representation is looking to make much more sense (and dollars and needed cents) than ever. For me, for sure! I certainly won’t forget this in future voting go-rounds.
Anyway, good luck middle class. Seems very many will very much need at least some good luck on their side the way things now seem to be heading. Have a great day now.
I maybe don’t just get it.
Gouge the working class with tax hikes that wipe out their discretionary disposable income, and cut taxes for the well off and for corporations.
OH. So this is how it will work? The wealthy will spend so affluently that the corporations will still bring in even more revenues.
OH. OH. The lack of spending on all but the barest of necessities by the working class (who lack any more discretionary spending capacity after the GOP tax hikes) when combined with the affluent picking up of way more than the difference then leads to the magical “trickle down”.
And corporations can buy and sell stuff back and forth to each other too since they will have more money after paying lower taxes.
Hmmm.
I still don’t get it! ? Really? Yes Really. I still don’t. ?
And what of the ballooning deficits. OH. OH. OH.
Pass those down to the next generation. Maybe I am ? starting to get it. ? A little bit anyway. ? Good Luck America!
And Youngsters! ?
My future voting go-round plans are now fully determined. The “Ayes” of every Republican on the Senate Budget Committee made that iron-clad clear for me yesterday.
I am now, and likely for many years to come, totally done with voting for any GOP candidate in future elections. The GOP has become the “Reprehensible” Political Party. Good Day.
U.S. Senate Republicans absolutely endorse, through their super-frenzied recent ongoing actions, a clear conviction that the federal government knows best how to spend low and middle income wage earner income. And state and local municipality funding.
They also now clearly evidence, by their actions, an outright disdain for having and maintaining a quality public education school system.
Additionally their actions certainly evidence a clear desire to achieve an even much greater disparity between ultra-wealthy and those of modest and lesser means.
Further, “they” clearly have absolutely no issue or problem with laying on “double taxation” to wage earnings.
For all of these truths are far more than evident by the latest U.S. Senator actions taking place within that now disgraceful group it has become.
Residence property taxes predominantly fund local public education. State income taxes predominantly fund state level determined public funding social initiatives and needs.
All U.S. Republican Senators have thus far taken actions fully opposed to allowing “SALT” as a deduction from federal taxable income. And SALT has as a deduction, per my understanding, been in place since 1913. Some 100 plus years.
Anyway, the entire present base of U.S. Senate Republicans think and take actions diametrically opposed to all of what I have just covered. Plus, I could go on.
BOTTOM LINE: The CURRENT Senate Republicans obviously believe federal level taxation and representation is better than state and local representation. Their intentions and actions “yell this out” as a truth of their beliefs in volumes.
Such Senate Republicans are clearly way way out-of-touch with the mainstream people of the country (who are the backbone of the society and who are those that truly make it such an incredible and wonderful country).
Clearly the Nations’ Current Federal Level GOP Senators are far too too “dense” to get it (or whatever those who do get it might call it)! Or To Even Care!!
Good luck mainstream and hard working masses. Have a Nice Day. And God Bless America.
I just read a few accounts of how a few last hold-out U.S. Senate Republicans will now support the others with their Republican tax hike plans to be levied on lower and middle class wage earners.
Is hard to know if that is the real latest update. Is hard to believe anything at all that comes from Republican politicians these days.
Do so at your own expense (err, if you are not rich) and at that of so many other non-rich incredibly good people.
But there have, by far, already been way too many lies for me to even consider “falling for it”.
Because of “supposed” promised agreements to (in the future) support what the “cavers” are seeking. A few Republicans with a sliver of morality will now concede.
What a shame things have become as regards the Republican Party.
Even I now know to never ever ever trust ANY Republican at their word any more. Nuts And Nutty for those who believe it.
Even if they think they are on the inside. So so foolishly gullible.
And I trust everybody and everyone until they have made me the fool. Fool me once, shame on you. Fool me all of the time, then who is the fool? And to then be a party to the travesty.
Good Night!
Small slivers, even small, help. ?
Personal Exemptions OUT. State Income Tax Deductions OUT. RICH PEOPLE Private School $10K DEDUCTION IN. SO-CALLED MIDDLE CLASS TAX CUT BIGGLY FAT LIE. ?
Good Day. ?
Trickle trickle little star, trickle trickle down favorably upon us please.
For now I know my ABC’S. Sweet dreams ? all.
? ? ? ? ?? ⛵ ? ?
Good luck ? Republicans in next voting go-rounds. NOT! ? ?
Bloomberg article says finds “few defenders” of home mortgage interest deduction.
Well what does some over-paid theoretical non-real world academician economist, or do economists, really know.
Hints: LITTLE! Much less than little. ? ? ? ? ?
And when economists almost all think one thing, things go with an inverse correlation with “empirically proven” incredibly high “confidence interval” accuracy in the opposite way.
And NO REPUBLICANS think, or have Any ability whatsoever to understand, that the vast majority number of people as lower and middle class worker’s spending on necessities help make the economy go, and keep it going from the sweat of their hard work.
And so Republicans (the now “Reprehensible” political party) intend to get rid of Personal Exemptions and “SALT” deductions from federal income taxable income.
They think the last recession was “great”. Just wait? Then till their stock, bond, and “alternative” investment values come down too. ?
Oh well, what comes around goes around. So I have heard. ?
Hearsay, Till Times Catches Up AND perhaps (perhaps? ? ) Proves So.
Good night, sleep well.
? ? ? ? ? ? ? ? ? ? ? ?
Democrat win in Alabama’s U.S. Senate seat race. NICE!!!
Very nice.
Ride the momentum while you can. Maybe a year or a tad bit more.
But I was so not poor, and so disconnected from it so far. And then, dog-gone-it.
When the stock market fell, no big deal, but then so did the jobs. And so did something called the GDP. Say what?
And then, we scraped by. Best ad we could. And then all is well. ?
Thank you ? GOP. ? Not.
Final bill before next weeks vote (Ram-Rod) not as bad. Still bad. Total opposite of “Robin Hood”. That is now what Republicans are all about. ? ? ? ? Good luck others. ?
Yes. Yes. Yes. My future voting go-rounds are now fully determined. ? ?
Good Bye Republicans. ? ?
Me got Big Lump Of Coal via Reprehensible Party Tax Hike.
May just sell everything, and move away to less expensive tropical country and spend what me have left there.
Probably not, at least not quite yet, but probably at some too not distant time. Why? Because is why. Err, what is left will go further elsewhere. Out of the country. By Far.
Good for this country no matter no more. Writing is “on the wall’ here. You no rich, you will be gouged. You too poor to leave, too bad. Not my sentiments. Oh well. ?
Have to do what is best to do.
Me put down 30 bags of mulch today. In past would have hired someone. No more.
After Republicans tax hike, that be that.
Republicans hiked my income taxes 2K plus per year beginning with 2018 only to go up from then on. Under what they keep saying is a tax cut. Liars they surely totally truly are. Me will not vote for any Republicans (such total liars) any more whatsoever anymore. Only for Democrats bow 100% of the time henceforth. Is now what must be done. Partisan politics will beget only the same from me. Only will vote for only always Democrats from here on.
Why hasn’t Republican tax bill been signed into effect? Waiting till Christmas Eve for big fat tax something? Either way Medicare will be impacted.
Put that off till next year I expect, and continue the fake out. Oh well, what comes around goes around, delay that while they can. And keep “kicking the can down the road” while they can. For now!
Sad sad sad state of affairs. ?
Mid-2019 recession. Mis-typed. ? Oh well. Now we need further short-term fiscal stimulus and no further (not yet hitting) middle-class rip-off. Till it hits. Then is 2019. ? Oh well. Beyond our now control, but do be aware. ?
Merry Christmas.
Sell me the tax bill. Are you kidding? My taxes went up substantially. So many lies about it being a tax cut. Over time, some people might figure it out or what is happening. Oh well, guess I need golf course for Biggly Biggly.
Merry Christmas all.
And Happy New Year.
What they no maybe understand. New York, Illinois, California, New Jersey, etc.
They now, not yet, but will pull back from the stick me now not know and again mania. Good luck all. ? ?
When some states get back $4.09 plus for every dollar provided to federal dollar. And some others get back the 50 cents on the dollar, or less, that no be right.