Our United States Senate now wants to help us with a new tax plan. Currently we pay Federal income taxes. Then, if we itemize deductions, we are allowed an exemption on adjusted gross income for state and local taxes. The idea is that we don’t pay double taxes on our income. However, under the plan which the Senate says will help us, we will pay Federal income tax on income already used for state and local taxes – double taxation! Will this help you?
It is also proposed that we will no longer have a deduction for mortgage interest. The wealthy are not likely to have mortgages and therefore, the loss of a mortgage interest deduction will do them no harm. But, for the rest of us? Will this help you?
For teachers, they have the brilliant idea to eliminate a $250 deduction for personal disposable income used to purchase materials and supplies for students. They talk of limiting charitable contributions. They want to reduce deductions for personal health care expenses. Will they take away deductions for uniforms, for union dues? Oh yes, they will however allow a deduction for private jets. Will this help you?
What should be done? What will be done?