Residents of New England and nearby New York and New Jersey endure some of the nation's highest tax rates (not New Hampshire). With the capping of the State and Local Tax (SALT) deduction on federal taxes, the bad behavior of these states was revealed to everyone. You may think that the federal government and those who want to "tax the rich," are the real winners of the SALT cap, but that doesn't appear to be the case. The tax the rich crowd isn't so keen on taxing the rich when that means themselves. And the federal government is giving away far more in revenue than it's getting with the … [Read more...]
Could This Be the End for the Mortgage Interest Deduction?
For decades the mortgage interest tax deduction has rewarded homeowners at the expense of other taxpayers, but with the 2017 tax reform, much of the benefit for homeowners was eliminated. Most middle class homeowners achieved better tax results by taking the standard deduction, bringing the percentage of taxpayers using the mortgage interest tax deduction down from 21% in 2017 to only 8% in 2018. At Bloomberg, Karl W. Smith suggests the deduction should be eliminated entirely. He writes: After 1986, when Congress eliminated the deductibility of interest on personal loans and increased the … [Read more...]
Can You Guess Where Financial Firms Are Going When they Flee the Northeast’s High Taxes?
If you answered Palm Beach County in Florida, you're right. When tax reform capped state and local tax deduction from federal returns, financial firms and their employees were exposed to the naked truth about the high state taxation in the Northeast. With governments in New York, Massachusetts, and Connecticut drowning in obligations, taxes aren't coming down soon. That's why so many financial firms and employees are voting with their feet and heading for low tax Florida instead. Many wealthy retirees have already made this sound financial choice, and it's no surprise to see profit-making … [Read more...]
Even Democrats Don’t Want Kamala Harris to Bring Back the Bad Old Days of Taxation
Democrats currently vying for the party's presidential nomination are unveiling their plans for government. Many of the plans include an idea known as "Medicare for All." Senator Kamala Harris from California has released her own "Medicare for All" plan, and to pay for it, her plan would raise taxes domestic and offshore profits at the same rate. The idea could be opposed by Harris' own party leadership, as Senate Minority Leader Chuck Schumer and House Ways and Means Committee Chairman Richard Neal helped end the practice. Bloomberg's Laura Davison reports: That could face resistance within … [Read more...]
Cook County Residents Forced from Their Homes
Chicago-area politicians have given their constituents something special this year, a major property tax increase. In a state already near the top for income taxes, residents of Chicago and Cook County are facing property tax bills that have skyrocketed. In the face of property tax bills that have even climbed by 60%, some residents are being forced by the bills to move out of the area. Dana Kozlov reports for CBS: Property tax increases in Cook County are going beyond sticker shock. For some families it’s life-changing, and they say they will have no choice but to move. “This is out of … [Read more...]
Is the Presidential Campaign a Threat to Market Security?
Recently on the campaign trail, Sen. Bernie Sanders, who is running in the Democratic Presidential primary, explained his plan to pay off American students' college debt by putting a tax on securities transactions. According to Felice Maranz at Bloomberg, Sanders' plan includes "a 0.5% tax on stock transactions, a 0.1% tax on bond trades and a .005% tax on derivatives transactions." Maranz continues, noting that shares of online brokers like TD Ameritrade and E*Trade fell in value after Sanders' comments, writing: The financial transaction tax (FTT) “boogeyman” appearing on the campaign … [Read more...]
United Technologies Flees Connecticut’s Poor Management for Massachusetts
The Wall Street Journal's editorial board explains the Connecticut strategy succinctly when it writes "Thus we have Connecticut’s business model: Raise costs for everyone and then leverage taxpayers to provide discounts for a politically favored few." By raising taxes on all corporations and individuals, Connecticut makes owning a small business very difficult. If a major corporation can lobby for better tax treatment, small businesses are even less capable of competing. Small businesses are the powerhouses of the American economy, putting them at a disadvantage to big corporate interests … [Read more...]
Can You Lower Your Property Tax Bill in 8 Steps?
If you own real estate, you know that property taxes seem to rise continuously. Undoubtedly you have questioned if yours could be reduced. Fidelity has posted a guide that could help you lower yours. Sandra Block writes: Home values have risen across the country, which means many homeowners' property taxes are going up, too. The average annual property tax for owner-occupied single family homes nationwide in 2017 was $3,399, an effective tax rate of 1.17%, according to Attom Data Solutions. Nine counties impose average annual property taxes of $10,000 or more. In Westchester County, New … [Read more...]
Illinois Goes Back to the Trough
Illinois politicians, led now by Governor J.D. Pritzker, are aiming to end constitutional protections of taxpayers in Illinois, and to raise taxes on the wealthiest in the state. Naively, those politicians pushing for the increase in taxes presume that the move will prevent future deficits. Raising taxes hasn't seemed to do that in the past, so it is hard to imagine why that would work now. It seems more likely the tax increases will lead to a faster flight of Illinois' remaining wealthy citizens. Bloomberg's Elizabeth Campbell and Amanda Albright report: Illinois lawmakers paved the way for … [Read more...]
Happy Tax Freedom Day!
It's April 16th, and yesterday Americans' income taxes were due to the IRS. Coincidentally, today is Tax Freedom Day, and until today, the average American has been working to pay off his taxes for 2019. According to the Tax Foundation, "Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay its total tax bill for the year." The Tax Foundation breaks down exactly how much time Americans spent paying off the different types of taxes in 2019, writing "This year, Americans will work the longest to pay federal, state, and local individual income taxes (42 days). … [Read more...]
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