House Democrats promise 'meaningful' relief for state and local tax deduction cap

[BumRushDaShow]

17. The "problem"

is we're not just talking about "property taxes" that were changed with the SALT change. "SALT" = "State and Local Taxes" and can include state/county/city "income taxes".

The average "suburb" is known to use property taxes in lieu of other types of taxes to get income. And you have cities like mine (Philly, which is also its own County) where you have a "city wage tax", "property taxes", AND the state's income tax on top of that. These taxes fund state and city services and fund the public schools. This is not counting our city's 2% sales tax on top of the state's 6% sales tax (where sales taxes were part of the "either/or" for deductions on federal income taxes before the "tax give-away to the wealthy" changes that were made to the tax code in 2017). And I won't even go into the fact that PA has the highest gasoline tax in the country.

The idea of a "middle class" is what has supposedly been the answer to the dichotomy of "rich" vs "poor" and it's a given that people in the "middle class" may see themselves as "poor" compared to the very wealthy, but there shouldn't be a view where they are lumped in as "very wealthy" either, when compared to the poorest among us.

Based on your profile, you indicate you live in Atlanta (although I wouldn't know if that is still true or not). I have both relatives and former co-workers/friends down there. They moved there because of the "cheap cost of living". One of my buddies was able to buy a 2-story, 3 bedroom single house with a garage and 2nd floor deck for $150K when she had moved down there. That type of house would easily cost $600K here in Philly as a "single" ("detached" ) on a 1/4 acre or more, where the typical 2-story 2 or 3 bedroom "row house" ("attached" ) has suddenly been going for $80K as the cheapest, upwards of $200K for the gut-and-renovate types, in one of the poorest neighborhoods in the city (Huntingpark/Nicetown/Tioga).

So as noted by others in this thread, the impact of the SALT change ended hitting blue states and municipalities that use tax money, whether through "property taxes" and/or income taxes (or both like here), to fund services.