RUSH: It seems that some deep diving has occurred into the Republican income tax cut proposal, and it seems that some middle class taxpayers are actually gonna get a tax increase.
Now, you know why this is? We knew it on day one, and we told you, but it took these yokels a little while to figure it out. It is the elimination of deductibility of state and local taxes that is the that is gonna cause a lot of people’s taxes to increase, no matter what happens to their income tax rate. That’s right. And there are now headlines all over the Drive-By Media, “Republican Tax Plan Contains Increases for Middle Class.” Drive-Bys love writing that headline.
No, the rates aren’t gonna go up. It’s the deductions that they are getting rid of that will effectively result in people paying more dollars. What are you are frowning at? You disagree with my analysis here? Oh. Snerdley is ticked off at that. Well, you knew when state and local income tax deductibility is gone — (interruption) no, the mortgage interest, no, they’re not getting rid of that. The home mortgage interest deduction remains.
Now, property tax, property tax was originally gonna be included in the no-more-can-you-deduct-it column, but not yet. It survived. But remember, all we have is a proposal. We don’t have any debate or votes yet, and we know that whatever is proposed is not gonna be the final form that is voted on, if there ever is really a vote. But when they were originally thinking about this, they were originally considering eliminating the property tax deduction along with the state and local income tax deduction. But the property tax deduction survived; state and local tax deduction, income tax did not.
Charitable deductions survive. You’ll still be able to deduct whatever you give to charity, yourself not included. You do not get to consider yourself a charity even though many people think of themselves as one now.