Monday, December 4, 2017

Dueling Tax Plans

I commented this at Z's and thought it might be worth posting here after edits.

You might find this interesting:
A chart comparing tax plans, Senate and House.

We’ve seen increased economic activity after the Trump election that would lead us to believe that it would continue under either tax plan.

There is concern over removing Property Tax deductions.

I paid off my house, so mortgage interest doesn’t interest me, but property taxes do, as does paying federal tax on the income that paid them.
I’m not sure what effect property tax deductions have on real estate investors.
Property tax deductions for homeowners is one thing, for business investment is another. My ox, your ox.

State and Local Tax (SALT) deductions are probably more problematic to many people.
A repeal of that obviously hurts high state tax (and city tax) residents like Californians.
But that deduction forces us “low” state taxpayers to subsidize those high tax states, taking voter pressure off their state legislatures to lower state taxes, allowing those legislatures to continue subsidizing illegal immigrants, poor moral choices, social change, etc.

What do you think?


  1. Thank G0d you paid off your mortgage ED! lol Have a bkessed and magical holiday season !! xoxoxox

    1. The same to you Angel!
      Beautiful post you have at:

  2. The problem with double taxation is that it can wind up forcing people to pay out more than they earned. It doesn't happen often, but it has happened.

    This is a long reach back for which you know me to be famous Ed. The film director Ingmar Bergman had to leave his beloved Sweden because his earnings put him in combined brackets where he would pay out, IIRC, over 100% of his income. The Laffer curve gained currency in the late 1970s, and it still applies. Raising taxes, however it's done, depresses creation. What was that line of Reagan's If it moves (production), tax it. If it still moves, regulate it. If it stops moving (welfare), subsidize it.

    Bottom line here is that the pols know how to divide us. The various complexities make it very hard to figure what is good in the long term for each of us.

    So fitting with this topic and its hidden divide and conquer strategy, here is the most fitting long term solution:

    tax those who want government expansion, subsidize all who want it curtailed back to providing only defense and sanitation services.

    1. Is it double taxation to pay taxes on the same amount to two separate entities?
      It seems like it, but I don't think it is anymore than paying an income tax on money you use to buy something that you pay sales tax on.
      Then again....

    2. LOL. "Then again...."

      You see the complexities. They are not a bug but a feature for their beneficiaries. That is, not you and me.

      I like my solution better with each passing moment. Will never get that passed by any legislature, it would take a popular referendum because the taxpayers would rather have to buy in the free market than have govt promise to deliver only pennies on the dollar (if at all, kinda like the United Way).

      And sadly, that popular referendum would have had to been passed 50 years ago before so many were getting their tiny piece of the action.

  3. Looks like the house plan sucks. I can't glean anything for our home situation from the chart though. Nothing close to my situation in there.