sales taxes will soon be deductible

[ElFenix]

Originally posted by: z0mb13

yes our state tax is deductible, but we STILL have to pay state taxes! I dont think u can deduct it to zero

we still pay state taxes.

do you know what a deduction is?

 

[FoBoT]

Originally posted by: tw1164

Originally posted by: FoBoT

Originally posted by: tw1164
This is crazy, TN doesn't even have income tax (except for investments etc..), and now they have a chance to deduct their 7.25 (+ local sales tax?) taxes?

that is the point

in states where there is a state income tax, the $ paid to the state in income tax has been deductible from federal income tax

in states that have no income tax, the people have not been allowed to deduct the only state tax (sales tax) that they have been paying from federal income tax

this is supposed to "even the playing field" on state tax deductibility

But what about states that have income tax, and sales tax?

your politicians boned you! what is new?

write a letter or something

 

[FoBoT]

Originally posted by: z0mb13
someone please explain to me why this is fair?

are you from outer space? :Q

you use the word "fair" in a discussion of taxes and laws and politicians? 😕

since when did a politician have "fairness" to you as his #1 goal?

they don't make laws or change laws to be "Fair" , they do it to get re-elected or help out people who give them donations and crap like that

 

[z0mb13]

Originally posted by: ElFenix

Originally posted by: z0mb13

yes our state tax is deductible, but we STILL have to pay state taxes! I dont think u can deduct it to zero

we still pay state taxes.

do you know what a deduction is?

oh I am referring to a state that only have fed taxes, but still get this sales tax deduction

 

[CPA]

Originally posted by: Shelly21

Originally posted by: Phoenix86

Originally posted by: Yzzim
why in the world would it be deductible?

Because sales tax is the way the state makes income (at least in Texas) as opposed to state income tax. Why would you want the dame dollar taxed twice (federal and state sales)? Remember, states with state income tax have been deducting that from federal for a long time.

This is just evening up the states that don't have state income tax, in favor of higher sales tax.

I agree, you shouldn't be taxed twice for the same dollar. But I always thought that's where the "standard deduction" came in. At anyrate, this is going to be tedious. oh well.

people who itemize don't get the "standard deduction".

 

[CPA]

Originally posted by: z0mb13

Originally posted by: ElFenix

Originally posted by: z0mb13

yes our state tax is deductible, but we STILL have to pay state taxes! I dont think u can deduct it to zero

we still pay state taxes.

do you know what a deduction is?

oh I am referring to a state that only have fed taxes, but still get this sales tax deduction

Zombie, forget Fed taxes for right now.

In CA you pay a State INCOME Tax. You can deduct that to calculate your Fed taxes.

In TX I do NOT pay a State Income Tax. I can not deduct anything to calculate Fed taxes.

So, assuming we are making the same pay, you end up paying less in Federal Income tax than I.

TX utilizes a sales tax instead of State Income Tax. CA also utilizes the Sales Tax, but not at the expense of the State Income Tax.

By allowing TX residents (and the other 6 states) to Itemize their state sales tax, the Fed is eliminating, to an extent, an inequity caused how states tax their citizens.