President Donald Trump (R) in addition to Treasury Secretary Steven Mnuchin walk out of the Treasury building, April 21, 2017.
Eliminating of which would certainly generate tens of billions of dollars in revenue needed to offset the money lost via lowering tax rates on individuals in addition to corporations. For the tax years 2016 through 2020, letting taxpayers off the hook for taxes paid to state in addition to local governments will cost the Treasury nearly $370 billion, according to a report via the congressional Joint Committee on Taxation.
Proponents of the deduction have long argued of which, without of which, taxpayers would certainly be hit twice for each dollar of income, by their state in addition to by the U.S. Treasury. Opponents argue of which the deduction benefits the richest taxpayers at the expense of those with lower incomes, or who don’t own a home or make large purchases of which carry a big sales tax.
The provision tends to benefit wealthier individuals because they pay higher state in addition to local taxes on income, real estate in addition to different property. nevertheless the tax break also benefits some middle-income households, a realization of which may complicate the White House’s tax overhaul effort.
President Donald Trump reportedly grew angry when he learned of which the change would certainly hurt some of those middle-income taxpayers, Bloomberg reported Thursday.
The White House press office released a statement to Bloomberg of which said in part: “The president has made of which unequivocally clear of which a key priority for tax reform will be to cut taxes for America’s hardworking middle class families.”
One thing will be clear: Eliminating the deduction would certainly hurt taxpayers who voted for Hillary Clinton a lot harder than of which would certainly those who voted for DTrump, according to a CNBC analysis of voter in addition to tax data.