The "Phased In Tax Cut" should be explored by families to incorporate.

The Republicans want to take away the deduction of State and Local Taxes. It is an attack on the local economy. Since the upper Middle Class is being targeted by Congress, there is the option of a family incorporating and setting up a trust. A visit to a lawyer and/or accountant will provide insight to this loss of deduction on income tax returns.

Basically, if the US Congress is going to assail the Middle Class, including the Upper Middle Class, Americans should feel free to move into areas in the new tax plan where taxes are being lowered, including incorporation and trusts as a family.

- Taxpayers (click here) who itemize deductions on their federal income tax are permitted to deduct certain taxes paid to state and local governments from their gross income for federal income tax liability purposes.

- State and local tax deductibility would be repealed under the House Republican Blueprint, and capped—along with other itemized deductions—under the campaign plan put forward by President Donald Trump.

- The state and local tax deduction disproportionately benefits high-income taxpayers, with more than 88 percent of the benefit flowing to those with incomes in excess of $100,000. (That is a two income household earning professional salaries, ie: doctors, lawyers, accountants, independent business persons and nurses. Yes, nurses. These are the college graduates with student loans.)

- The deduction favors high-income, high-tax states like California and New York, which together receive nearly one-third of the deduction’s total value nationwide. Six states—California, New York, New Jersey, Illinois, Texas, and Pennsylvania—claim more than half of the value of the deduction.

A change in tax structure should not target ONLY six states. If the Republicans feel comfortable targeting six states, then they should be comfortable targeting the filthy rich and mandate a minimum payment each year. A person earning millions of dollar US is able to pay federal tax without it effecting their lifestyle. There are Republicans longing for a flat tax. Issue a flat tax for the filthy rich. 

- The state and local tax deduction in New York and California represents 9.1 and 7.9 percent of adjusted gross income respectively, compared to a median of 4.5 percent.

- The deduction reduces the cost of state and local government expenditures, particularly in high-income areas, with lower-income states and regions subsidizing higher-income, higher-tax jurisdictions.