Tag: SALT

Member Post

 

Polls show that Americans are increasingly souring on Biden’s “Build Back Better” (Build Back Broke) $5 trillion massive spending boondoggle. That figure comes from the non-partisan analysts at the Congressional Budget Office (CBO) who were asked to factor in its costs over a full 10-year period. It is based on the bill the full US […]

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Pass the Salt

 

Having a friend for dinner?  Not sure where they’ve been today or whether they washed their hands properly?  You too can solve the problem using commonly available items:

SALT and Me

 

The congressman in my district (NJ 11) is retiring, which means the election to replace him is wide open. Though Republicans have held this seat for a long time, it could flip to the Democrats. The Democrat candidate is running ads saying we should vote for her because the Republican will raise our taxes. What? In my book, when a Democrat says they want lower taxes, they are lying. Not to jump to conclusions, I pulled out my tax information, ran the numbers for myself, and it turns out, Mikie Sherrill (D) is lying.

The issue is the new caps on the State And Local Tax (SALT) deduction. The Democrat’s ad states that her Republican opponent, Jay Webber, supports the cap. He does not. Webber has said many times that there shouldn’t be a cap on this deduction. What he does believe is that as a whole, the tax reform package will benefit New Jersey families. The numbers seem to bear that out on average, but the important question is, what about me?

I pulled out my 2017 tax return to see what the difference would be if I ran last years numbers using the 2018 rates and rules. The first thing to note is that the standard deduction is almost double what it was previously, which means fewer people will be itemizing their taxes now. Looking at my numbers, I will still be using the Schedule A itemization. Since my State and Local taxes exceed $10,000, I will be subject to the cap. That means fewer deductions than I had in 2017. Sounds bad, but because of changes to the rates my overall tax amount still ends up about $800 less than under the 2017 rules. So while the SALT cap did cost me a deduction, overall I still came out on top.

Member Post

 

The Treasury Department has struck down attempts to work around the loss of property tax deductions by high tax states like New York and New Jersey.  Per the Government Financial Officers Association:  The Revenue Act of 1913, which introduced the federal income tax, states that “all national, state, county, school, and municipal taxes paid within […]

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Road Salt

 

This year Eau Claire County ended up $260,000 under budget on road de-icing. Don’t worry though, they’ll spend the money on extra road construction this summer.

They’re under budget because Wisconsin’s warm and dry November and December (relatively speaking) means they used less salt. Has anyone blamed Global Warming for government budgets getting cut? We should get on that.

Richard Epstein examines the deregulatory progress being made by the Trump Administration, explains the new tax law’s implication for blue states, and imagines the consequences of a world in which the US withdraws from NAFTA.

Richard Epstein reacts to the tax plan released by congressional Republicans and explains what steps are most essential for jumpstarting economic growth.