Topic: Trump Effectively Taxing the Rich in Blue States (Read 318 times)

Well it seems like a very complex question then.

But if overall the tax revenue decreases... Then he's just lowering state revenue while rising the military budget. I don't really call that a smart move xD

You probably forgot that Trump himself is a typical oligarch. Do you think he's made his own hand cut off? Besides, now he is in that position when his signature worth a lot of money. I think it will act in the interests of the oligarchs.

Then its good. Besides USA needs more funds also  and boost their collection as they are in huge debt also. Oligarchs needs to pay more. I think Trump is just fulfilling his election promises with this policies and he is making reforms.

Yes more less, Trump introduced a Tax Plan that cuts the number of brackets the US taxpayer has to choose from seven income brackets to three brackets for personal income.

The US has three levels of taxing the Local/Municipal Taxes, the State taxes and the Federal taxes.
Trump's tax plan is to simplify the tax code and get rid of a variety of deductions people use to reduce the amount of taxes they pay on the federal/national level.

http://www.businessinsider.com/trump-tax-cut-plan-eliminated-itemized-tax-deductions-2017-4

The question is does that result in more growth as states and local governments can increase the taxes they charge and acquire more income from their citizens or less economic growth since the Federal Debt is presumed to grow.

Also does that mean more money in the pockets of the common person or the rich, sort of went at it from an economic angle no need to this is politics so the question from a political view is does this seem smart or stupid.

Pretty Much from a Poli View: Is Trump Smart for Getting revenge through taxes on New York and California or stupid, aka smart politics and positioning since it impacts democrats more and strengthens his base.

http://time.com/money/4756356/trump-tax-plan-state-local-deduction/

While undertaking tax reform, the Trump administration has promised to protect two of the biggest individual tax perks: deductions for mortgage interest and charitable giving, which cost the Treasury $68 billion and $51 billion a year, respectively. But a third -- the exemption for state and local taxes -- wasn't so lucky. Eliminating that loophole could bring in $63 billion a year, yielding more than $600 billion over the next decade.

The Times says that President Trump’s proposed changes to the tax code could increase the deficit by an estimated $3 trillion to $7 trillion over the next decade, according to the Committee for a Responsible Federal Budget, an advocacy group focused on reducing deficits.

https://www.nytimes.com/interactive/2017/04/26/us/politics/what-trumps-tax-proposal-will-cost.html

Which side is correct, or just offshoot.

As a non American I'm not very aware of internal reforms like this.
And I don't have much to say about it of course.

Could you just confirm if I understand correctly: is the tax plan of Trump to get rid of this deduction?

It seems to me that contrary to what is stated by the Times Trump's Tax reform will result in positive revenue for the Federal Coffer due to a significant pullback on reductions, at the same time it's leveling the field for all states not just the ones that are reliably democrat. The states most hurt by the tax bill are the ones that voted Democrat on this bill and they also tax the most so it seems like a strategic plan and way to get sweet revenge while rewriting the tax code. While it's also giving other states an opportunity to raise their state and local taxes a bit if they want changing cash distributions.

So the question remains is Trump's Tax Plan good/bad or something else?

https://www.bloomberg.com/news/articles/2017-04-26/trump-s-tax-plan-could-be-painful-for-new-york-new-jersey-and-california
http://nypost.com/2017/04/25/trumps-tax-reform-means-trouble-for-tri-state-tax-hikers/
http://time.com/4758411/donald-trump-tax-plan-debt-cost/
https://ftalphaville.ft.com/2017/04/27/2187897/blue-state-americans-should-worry-less-about-the-state-and-local-deduction/

"There is no doubt that if you are a New York or California resident, your largest deduction, by a factor that could be as high as 10, is the state and local income tax," said tax expert Robert Willens, of New York-based Robert Willens LLC. "

About 28 percent of tax filers claim the state and local deduction each year, according to the Tax Foundation. Of those, 77 percent deduct income taxes and the rest deduct sales taxes. The deduction ends up being far more valuable in states with the highest tax burdens.

Nationwide, wealthier taxpayers benefit the most from the deduction. More than 88 percent of its benefits go to Americans who earn more than $100,000 a year, according to the Tax Foundation.

Eliminating the deduction would boost federal tax collections by $1.8 trillion over the coming 10 years, the foundation calculated last month. That's revenue that could be used to fund the administration's proposed tax cuts. The measure is part of a sweeping White House tax proposal that Treasury Secretary Steven Mnuchin called "massive tax reform and simplification," vowing to "unlock the economic growth that's been held back in this country."