Delay on tax break plans affects many

[OhioChick]

By JIM ABRAMS, Associated Press Writer
16 minutes ago

WASHINGTON - Millions of entrepreneurs, teachers and parents with kids in college have a financial stake in whether Congress, in the dying hours of Republican rule, revives tax breaks that expired 11 months ago.

If Congress fails to act, teachers no longer will be able to deduct up to $250 for the books and supplies they pay for out of their own pocket.

Residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — each without an income tax — will miss out on an average $1,500 deduction for state and local sales taxes.

Lawmakers have tried all year to renew the diverse mix of targeted tax breaks. Ironically, it is their popularity that has stalled passage.

http://news.yahoo.com/s/ap/20061202/ap_on_go_co/congress_taxes

[proud2BlibKansan]

1. Gee I will really miss my $250 deduction

NOT!!

I spend at least 4 times that much out of pocket every year. When this was first put in place, I foolishly believed it would be raised to a more reasonable amount. But I guess I should have realized a Republican congress would be more likely to do away with it.

[Nite Owl]

3. I was a teacher and that

amount is almost insulting. Few people realize how much teachers spend to be able to work properly.

[proud2BlibKansan]

7. Amen to that

We don't even have copy paper this year. We have been scrounging for used printer cartridges to trade in for reams of paper at office supply stores.

Yes, few people have any idea of what we have to spend to do our jobs.

[TheFarseer]

2. I am kind of burnt up over the educators deduction

and I'm not a teacher. I just think it is the fair thing to do.

I am somewhat indifferent over the tuition and fees deduction. This is only for people who are phased out of the lifetime learning credit, unless there are situations I am not aware of.

I could give a shit about people in those states not being able to deduct sales tax. It's not my fault their state tries to pay it's bills by taxing tourists and with other regressive taxes and fees instead of using a progressive income tax. Maybe there should get with the program instead trying to screw with Federal taxes.

[Nite Owl]

4. That local tax deduction bothers me too

Why don't they just institute a state tax like most states do. It just seems like another example of the states doing the right thing paying for the ones who don't.

[lumberjack_jeff]

10. No, if your state has a state income tax...

... you can deduct it on your federal tax. States that rely on a sales tax (absent adoption of the above mentioned laws) don't have a similar deduction.

[Nite Owl]

11. Some have both

but can't deduct both.

[w4rma]

5. In fact that specific deduction makes the sales tax in those states even more regressive.

Folks who make enough money to be able to deduct that sales tax on their federal taxes, essentially pay less sales taxes than folks who aren't making enough money to qualify for a deduction.

And, I think that teachers' deduction should probably be a credit, instead.

[TheFarseer]

6. Good point

I'd never thought of it in those terms before, but their sales tax rates would in effect be lower. I called Ben Nelson a traitor and a sell out and everything else when he voted for that eventhough it wouldn't do anything for 99.9% of Nebraskans. It's unfortunate that most people don't understand the difference between deductions, itemized deductions and credits. It makes it much easier for Republicans to say stupid crap about taxes and get 20K/year people to agree with them.

[proud2BlibKansan]

8. Good luck with that

Legislatures don't want to do much to actually help teachers these days.

[OhioChick]

9. I have a teacher

in the family and they say the same thing.