I think the thing that really ticks the Democrats is they now have to pay more taxes and don’t get their breaks in taxes in states where they didn’t change nothing after the 2017 Tax cuts. Here it is in a nutshell better than I can explain it.
- The TCJA limits the deduction on mortgage interest to the first $750,000 of the loan. Mortgage holders who took out their loan prior to December 16, 2017, aren’t affected. In addition, interest on home equity loans or lines of credit can no longer be deducted, unless the proceeds were used to buy, build, or substantially improve the home.10
- The state and local tax (SALT) deduction remain in place, but it’s been capped at $10,000. They can deduct property taxes, and either state income or sales taxes.
Now if you read this like me you’ll see that if your property taxes and state sales taxes are higher than $10,000 you can’t deduct them. After December 16, 2017 a mortgage over $750,000. The interest amount on anything over $750,000 is no longer a deduction. With most of us with mortgages $750.000 or under aren’t effected. Now anyone paying either more than $10,000 in property taxes and having mortgage of more than $750,000 are going to pay more taxes. This especially effects people in New York , California , Illinois , New Jersey and other states that didn’t adjust their tax codes to match the Federal tax code. The estimate it will give these states a $137,000,000,,000 tax break if repealed. But you see what it really does is give the rich people in theses states that tax break. The Democrats who are always saying how fair they are and always saying they want to tax the rich more. Really want to understand this in the light of providing a tax break to the rich and famous and rich tax payers in these states. These states want to continue to have the rest of the country help pay the rich and famous taxes.
I get it that if you pay more than $10,000 in property taxes and own a home mortgage higher than $750,000 you are stuck paying more. But in other states were the taxes aren’t so high they have made changes to their tax codes to help with this change. But in others were they use less money to run their states the burden isn’t so high on the wealthy.