Hacker News Reader

Comment by nodesocket | Hacker News Reader

Serious question are you just making this up or trolling? Because nearly everybody should see a tax reduction? Are you structured as a pass-through LLC?

Do you own a house and live in New York or Caifornia?

View on HN

Considering that California and NY combined represent at least 20% of the total US population, clearly it is not true that "nearly everyone" should be receiving a tax reduction. Indeed, the way the tax law works, most middle class households should see a minimal tax break, if any, with the tax benefits disappearing in or by 2020.

There's a 20% deduction that can be taken for the pass-through income ... if the pass-through income is below a threshold: http://www.cpapracticeadvisor.com/news/12389903/2018-tax-ref...

So for some earning beyond a certain income threshold, yeah, they will get taxed a lot more.

Interestingly, I think I saw that engineering and architecture services are exempt.

Since when did "be a homeowner in NY or CA" become some maligned minority that deserves to be screwed to benefit rich folks?

>homeowner in NY or CA

>deserves to be screwed to benefit rich folks

Hate to break it to you but if you own a home in NY or CA your probably one of the rich folks.

People inherit houses. Do you mean "rich on paper'?

Should there be a difference between someone who inherits a debt free, million dollar house in a liquid real estate market versus someone who inherits a million dollars worth of index funds in a Fidelity account?

In California, the heir to the house is arguably better off because they would likely inherit the proposition 13 tax basis and pay very little in property taxes.

Inherited wealth should count, don't you think

NY is a big state with a significant portion being rural. Likewise Cali is a huge state, and it’s not all SF and LA.

I agree but if you live in a rural area in one of those than the change to SALT matters much less to you.

> if you live in a rural area in one of those than the change to SALT matters much less to you

Why? State income taxes apply to you no matter where in the state you live.

Yes but you can deduct up to 10k, you probably won't be above that if you are in a truely rural area. Unless you are a business owner but then we are back to being rich.

Since living in the highest taxed states and then complaining about taxes... I moved from SF to Nashville TN, couldn't be happier.

People make decisions based on the available information, which does NOT included a looking glass.

Imagine if your property taxes quintupled because it turns out your governor misallocated tax revenue and now they need to make up the shortfall. Well, serves you right for moving to TN, right?

Wrong.

CA taxes haven't quintupled in the last year. Its always been high.

> People make decisions based on the available information, which does NOT included a looking glass.

All the information on underfunded state pensions is public, and has been for some time.

I don't know why anyone would move to fiscally-troubled states like Illinois or Kentucky, for example, and expect their taxes not to substantially increase over the next couple decades. Some states are simply better fiscally run than others.

Could Tennessee handle an influx of 30 million people? I doubt it. Clearly it is not feasible to say to everyone, “Just move.” There is also the fact that southern states tend to be subsidized by the richer states. The low taxes of Tennessee come, partly, from the generosity of the wealthier states.

Maybe they need to get more involved in local government then and try to change things instead of relying on the federal government to bail them out.

Asking the federal government not to tax people on income they never see (because of SALT) is not the same as asking for a bailout.

In fact, it's the other way around: high SALT states tend to rely less on federal aid and so are actually subsidizing the other states.

Are you talking about the southern states or California? California gets less from the federal government than they give to the federal government. The reverse is true for most southern states.

The idea behind the SALT deduction is that the Federal government gets their taxes after the states collect theirs. It's traditionally been framed as a conservative states' rights issue.

Tennessee has lower taxes and happens to be one of the states that depends most on federal assistance.

So, yeah...maybe we should all move there. Oh, wait.

Reply on news.ycombinator.com