Thursday, January 4, 2018

The tax bill that makes Trump POSTUS (president of some of the United States), by Matt Bai

"...The federal tax code has always assumed that Washington is entitled to tax only the income you have left after the state (or the city or county) has taken its share in property and income taxes. I suppose that’s because, as Republicans are always telling us, we are a republic of states, and those local governments are the principal taxing authorities and service providers.

Under the new law, however, Washington cares only up to a point if you’ve already been taxed on your home and income. Now you can deduct the first $10,000 of property or local income taxes; after that, the IRS will consider all of it taxable income.
If you don’t earn much money, or if you happen to live in a low-tax state, that’s not a very big deal. The people who really get crushed here are middle- and upper-income families in states like New York, New Jersey, California and Illinois.
If you live in one of these urban states and have managed enough of a salary to buy a nice home in a good school district, and assuming you itemize your deductions, then your bill from Washington is probably going up by thousands of dollars....

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