Eliminating the State Tax Deduction

[Bingoloid]

Thoughts? According to the article, this is typically a $2,600 federal deduction for Broome County taxpayers.

 

http://www.newyorkupstate.com/news/2016/12/the_68_billion_question_will_trump_gop_cost_ny_its_most_popular_tax_deduction.html

 

The historical norm has been that state tax dollars aren't to be taxed again at the federal level for 100+ years. This would disproportionately impact taxpayers in higher-tax states, but some are arguing that it will resolve a perceived subsidy to higher-tax states.

 

Since New York receives less from the federal government than it pays as it is - unlike most states - I think this is kind of a stretch, but it's an interesting point that the federal deduction isn't really agnostic to state policy.

[Kaz]

It probably makes sense if you live elsewhere, but not in NYS.

The person that commented on the article said: "Why should I be penalized because I live in New York?"

To which I respond: "It's a tax on stupidity". I mean, when the chamber of commerce runs ads locally to tell you how lucky you are to live here, and the state spends $50M+ to create about 75 jobs....something is amiss.

 

Get rid of itemized deductions? Sure, why not. And while you are at it let's eyeball all those 401Ks out there next. Is it fair to collect Social Security when you have your own nest egg? The next proposal will be to confiscate all or part of those 401Ks to keep SS afloat. That would be 'fair', right?

 

Republican or Democrat - Does anything the government does surprise you anymore?

 

(and yes, I did read the part about the standard deduction being raised)