Boots & Sabers

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Owen

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1314, 17 Nov 21

Democrats Fund the Rich

The Democrats are revealing their real priorities. They really are the party of the rich now.

The House is expected to vote this week on President Joe Biden’s Build Back Better legislation. The social spending bill includes investments in clean energy and affordable child care – but it also includes a $285 billion tax cut that would almost exclusively benefit high-income households over the next five years.

 

The measure would allow households to increase their deduction from state and local taxes from $10,000 to $80,000 through 2026, and then impose a new deduction cap through 2031. It’s the second-most expensive item in the legislation over the next five years, more costly than establishing a paid family and medical leave program, and nearly twice as expensive as funding home-medical services for the elderly and disabled, according to an analysis by the Committee for a Responsible Federal Budget.

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1314, 17 November 2021

7 Comments

  1. dad29

    Since Wisconsin has relatively high income taxes and Milwaukee has very high property taxes, you can bet there will be some successful fund-raisers for (D) members of Congress.

    After all, it’s free money. If I pay $15K less Fed income tax, I can afford $10K for my kept Democrat.

  2. Mar

    They are basically rewarding the rich in Blue states.
    In my part of Arizona, to get to $30,000 in property taxes, it probably would be as big as Buckingham Palace. Well, not quite that big but I don’t think any houses and land would come close to $30,000 in property taxes.
    Thus, this part of the bill would not do any good, along with the rest of the bill.

  3. Mark Hoefert

    In West Bend, a couple with a combined income of $200,000 (ie., 2 professionals) & a $500,000 home (not unheard of in today’s market) would have over $20,000 in state & local taxes – $10,000 income, $10,000 property. Less than the standard deduction, but start adding in mortgage interest & donations and the current $10,000 cap does have an impact. On $10,000 and with incremental tax rates from 22% to $37%, that is a difference in Federal taxes of $2200 to $3700.

  4. Mar

    A 250,000 home here pays about $1,530 in property taxes.

  5. Mark Hoefert

    A 250,000 home here pays about $1,530 in property taxes.

    And a $500,000 home there would pay $3060. That is quite a difference.

    Arizona sales tax ranges from 5.6% to 11.2% based on locality. In West Bend it is 5.5%. I have a car on factory order – sales tax is $1818 (5.5%). At 11.2% that would be $3701.

    Arizona property tax is calculated on 10% of assessed value. Commercial is calculated on 18% of assessed value. So like anything else, increased business tax is either expensed against income, or passed on to the consumer. In that case, who would not have a clue how much it is costing you.

  6. Mar

    In our county, the sales tax is 8.5%, on non food items unless it is prepared food, food is not taxed.

  7. Mar

    Car sales tax in Arizona is 5.6%, statewide and counties do not col L with a dike of it. To register a car, it’s less than $50, depending what you buy.

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