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A comment on I.R.S. Warns States Not to Circumvent State and Local Tax Cap. Parent comment

Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by Spooky23 on Wednesday May 23, 2018 @10:20PM (#17140505)
The tax reform hit many places hard. You can only deduct the first $10,000. Every suburb of NYC has an average property tax of over $10k, plus most people pay state income tax. These people are doubly impacted by the higher standard deduction, which makes it difficult for all but the wealthy to deduct.
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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by bcheung on Wednesday May 23, 2018 @11:09PM (#17140775)
Not sure I follow. The wealthier have higher incomes and higher property taxes due to buying more expensive homes. The $10,000 cap hits them even harder.
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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by Spooky23 on Thursday May 24, 2018 @05:15AM (#17142337)
If you live in New York, New Jersey, California, etc, a large percentage/majority of homeowners are impacted by the $10k cap.

But you need to clear $24k in deductions (as a married couple) to even take that deduction.

The average homeowner loses, as they can’t cross the threshold, and every marginal state/local tax dollar costs 15-25% more than it did before.

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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by bcheung on Friday May 25, 2018 @09:26PM (#17159565)
The 2017 standard deduction for married couples was $12,700 (compared to $24K in 2018). So the average homeowner also gets an additional $11,300 tax free. Granted so do non-homeowners.

I don't think the "average homeowner" would complain that they can't take as big of a homeowners deduction when the net result is they are exempting a larger portion of their income regardless.

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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by lr4444lr on Wednesday May 23, 2018 @10:46PM (#17140639)
Not following your latter point: isn't the flat rate for the higher standard deduction progressive?
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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by Spooky23 on Thursday May 24, 2018 @09:12AM (#17143602)
Not really.

It’s subsidizing sparsely populated states that either don’t need to or don’t care to provide the state/local services that populated places need.

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Re:I.R.S. Warns States Not to Circumvent State and Local Tax... by lr4444lr on Thursday May 24, 2018 @10:33AM (#17144323)
What does population have anything to do with it? It's based on income. The fact that more densely populated places have higher per capita service costs is the problem.
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