All these Americans will be effected by the end of the state and local tax deduction. Those are folks that contribute to the USA economy through more disposable income. As soon as spending among this group seems to diminish, merchants will drop their percent of profit and reduce consumer prices. The country's economy cannot afford to have this segment out of the market place. For the Wall Street Republicans, they just shot themselves in the greedy foot.
...Currently, taxpayers can deduct their state and local property taxes as well as either their income or sales taxes. The House bill would repeal the income and sales tax deductions and cap the property tax deduction at $10,000....
The real political hay the Republicans were looking for was this:
The average claim per claimant, or the total dollar amount claimed in each state for a given deduction or credit divided by the number of tax filers claiming the deduction or credit.
There are only two states that fall into higher than average numbers, California and New York. These are the wealthy and contribute to Democratic candidates. They won't even feel it. These folks will look to other ways to save on taxes and will continue to live where they love and will continue to contribute to their favorite candidates.
The pain the Republicans were hoping to heap onto Democrats won't even be felt. It effects the Middle Class and the lower Middle Class in home purchases if they can afford to be in the housing market at all. It will postpone the American Dream for them, but, why should these states be any different than the Republican Red States where there are two classes of people, "The Haves and the Have Nots."
Don't think for one minute the Republicans didn't contemplate this measure.
July 19, 2017
By Mark P. Keightley
Specialist in Economics
"An analysis of the Geographic Distribution of the Mortgage Interest Deduction" (click here)
Make no mistake, this was ushered in by Trump!
Personally.
"Well, none of them are my voters."
He lives in his hotels, a place of business.
