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Heartlander · 80-89, M
SomeMichGuy · M
@Heartlander Lol
1) You never subsidized both state [u]income[/u] taxes and state [u]sales[/u] taxes on your federal forms. (The ability to take off a return of overpaid taxes from a previous year simply fulfills a GAAP: income matching.)
For 2021, there is a complicated notion of "allowed sales tax", and for *my* state, one can only take off taxes on vehicles, watercraft, aircraft, homes...this is in the instructions for the "State and Local General Sales Tax Deduction Worksheet" on p. A-5 of the instructions for schedule A.
2) The amount itemized USED TO BE phased-out due to income, so only lower earners got the benefit of this, and didn't reduce taxes directly, it reduced the income on which the tax was based (which means only a percentage of the mortgage interest amount was "lost" taxes).
Trump changed that. So now high-income earners don't have a phase-out.
3) The idea is to encourage home ownership. Owners take better care of property and help the local economy by needing various services, goods--tools/equipment, materials, hardware--and sales of food, clothes, fuel, energy...
Do you think people should not be encouraged/helped to own homes?
4) Property taxes have not been something which are easy to control; they tend to increase, and if you live nearish to where you work, they are what they are.
Do you begrudge people living where they must, for work?
5) Do you realize people with more income buy more and may pay more taxes, so that helps the economy and the Treasury..and so it helps YOU...?
6) The truth is, if you live in a "red" area, you have probably been subsidized, net, more than you know.
[i](Edited to reflect current tax information and to correct an error.)[/i]
1) You never subsidized both state [u]income[/u] taxes and state [u]sales[/u] taxes on your federal forms. (The ability to take off a return of overpaid taxes from a previous year simply fulfills a GAAP: income matching.)
For 2021, there is a complicated notion of "allowed sales tax", and for *my* state, one can only take off taxes on vehicles, watercraft, aircraft, homes...this is in the instructions for the "State and Local General Sales Tax Deduction Worksheet" on p. A-5 of the instructions for schedule A.
2) The amount itemized USED TO BE phased-out due to income, so only lower earners got the benefit of this, and didn't reduce taxes directly, it reduced the income on which the tax was based (which means only a percentage of the mortgage interest amount was "lost" taxes).
Trump changed that. So now high-income earners don't have a phase-out.
3) The idea is to encourage home ownership. Owners take better care of property and help the local economy by needing various services, goods--tools/equipment, materials, hardware--and sales of food, clothes, fuel, energy...
Do you think people should not be encouraged/helped to own homes?
4) Property taxes have not been something which are easy to control; they tend to increase, and if you live nearish to where you work, they are what they are.
Do you begrudge people living where they must, for work?
5) Do you realize people with more income buy more and may pay more taxes, so that helps the economy and the Treasury..and so it helps YOU...?
6) The truth is, if you live in a "red" area, you have probably been subsidized, net, more than you know.
[i](Edited to reflect current tax information and to correct an error.)[/i]