1 million Californians will owe $12 billion more next year

[GURPS]

President Donald Trump’s tax cuts will be anything but for about 1 million California taxpayers who will owe Uncle Sam more money a year from now.

They’re the Californians who will lose a collective $12 billion because the new law caps a deduction they have been able to take for paying their state and local taxes, according to a new analysis by the Franchise Tax Board.

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Overall, most Californians should see a tax cut. The new federal law doubles the standard deduction available to all taxpayers, and it increases a child tax credit. It also slashes corporate tax rates.

It’s still hard to tell how it will affect individual families and businesses, said Controller Betty Yee, a member of the tax board. She doesn't have a clear picture yet on how different aspects of the new law will interact and potentially change taxpayer decisions.

“What we’ve been telling taxpayers is just stay in touch with your own situation, stay in touch with your tax preparer,” she said.



Trump's tax cut not for everyone: 1 million Californians will owe $12 billion more next year

 

[kwillia]

President Donald Trump’s tax cuts will be anything but for about 1 million California taxpayers who will owe Uncle Sam more money a year from now.

They’re the Californians who will lose a collective $12 billion because the new law caps a deduction they have been able to take for paying their state and local taxes, according to a new analysis by the Franchise Tax Board.

[clip]

Overall, most Californians should see a tax cut. The new federal law doubles the standard deduction available to all taxpayers, and it increases a child tax credit. It also slashes corporate tax rates.

It’s still hard to tell how it will affect individual families and businesses, said Controller Betty Yee, a member of the tax board. She doesn't have a clear picture yet on how different aspects of the new law will interact and potentially change taxpayer decisions.

“What we’ve been telling taxpayers is just stay in touch with your own situation, stay in touch with your tax preparer,” she said.



Trump's tax cut not for everyone: 1 million Californians will owe $12 billion more next year

But aren't these the rich people aligned with the political party screaming rich people aren't paying enough taxes? Seems to me they won't have a problem with this...:shrug:

 

[vraiblonde]

So this was indeed a tax on the rich?

 

[GURPS]

The FTB report also gave five examples of how different households would be affected by the cap on the state and local tax deduction. They were:

• A married couple with three dependent children who earn $200,000. The family paid $15,000 in state and local taxes and contributed $25,000 to charities. The couple would pay less federal tax despite losing the state and local tax deduction because it would benefit from an overall lower tax rate and expanded child credits. The FTB estimated the couple would pay $22,179 – about $3,900 less than under the prior tax law.
• Another married couple with dependent children in college and a combined $130,000 annual income. They have itemized deductions worth $30,000 between state and local taxes, mortgage interest and charitable contributions. The family would lose $5,000 in deductions for state and local taxes. Their federal tax bill would climb about $1,800 to $13,980.
• A single father with a child in college and income of $125,000. He has itemized deductions of $28,000, which would decrease to $18,000 because of the cap on deductions for state and local taxes. His federal tax bill would increase by about $1,800 to $18,100.
• A single mother with two children and income of $125,000. Her current itemized deductions are worth $15,000. Under the law, she’d get a standard deduction of $18,000 and a $4,000 child credit that she was not eligible to claim previously. Her taxes would decrease by $3,700 to $14,600.
• A married couple with two children who earn $50,000 in wages and $150,000 in pass-through income from a business they own. They had $80,000 in itemized deductions, and their tax under the previous law was $19,200. They have the most to gain if their small business income qualifies for a new 20 percent deduction on pass-through income. It would reduce their federal tax bill by $4,900.

I'm not sure ... but the complaint has been, people living in High Tax States were going to see a raise in taxes because of losing the Federal Deduction for those high state taxes


my attitude is - Enjoy to the Gov. you voted for, now pay for it