Quote:
Originally Posted by bimmer456
So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?
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Most people never deducted their state taxes. Two examples, NY only 40% of the people itemized, so 60% never saw the benefit, in California only 20% itemized. The two states with the highest personal income tax never deducted them on their taxes.
This information came from the IRS and was shared this week in the news. This is the reason the Fed got rid this deduction, most people do not even bother using them.
All I know is I'll now pay less on capital gains and dividends, the feds upped the limits at witch you start paid this tax. If you make less then $75k you do not have to pay capital gains.