Middle Class Tax Hike on the Horizon

As Congress and the Trump Administration move from their failed attempts to gut the Affordable Care Act to Tax Reform, middle class families could be in for an increase in taxes by way of the elimination of the state and local property tax deduction (SALT).

Public News Service has the story:

Andrew Koneschusky, a spokesman for Americans Against Double Taxation, explains the impact.

“If the deduction were to be removed, essentially more of their income would be exposed to federal taxation because you would be paying the full value of your federal taxes as well as your income taxes and your property taxes,” he points out.

The National Association of Realtors estimates households with incomes between $50,000 and $200,000 would see an increase of $815 if SALT were eliminated.

A bipartisan collection of groups, including the National Sheriffs’ Association, National Association of Counties and the International Association of Fire Fighters, are part of a coalition to preserve SALT.

Shelby County Mayor Mark Luttrell is among city leaders fighting to protect the SALT deduction. He’s concerned the elimination of SALT will make it challenging for local municipalities to continue to tax to cover investments in infrastructure, public safety, education and others.

“Our concern with this particular tax bill is it’s shifting a significant amount of money that state and local government has relied upon, really, for the last 100 years,” Luttrell explains.

The story continues to explain that while middle class taxpayers would see an increase in their tax burden, big corporations and wealthy individuals would see a reduction in their rate of taxation.

The tax reform issue will be addressed in coming weeks and TNCA will keep you updated on where Tennessee lawmakers stand.

For more on our work, follow @TNCitizenAction


 

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