One of the bill’s most significant changes would be the elimination of the deduction for state and local taxes. More than 40 million households wrote off a combined $350 billion in state and local income and sales taxes in 2015, according to the I.R.S., and 38 million households deducted close to $200 billion in property taxes. Both deductions would disappear under the Senate bill. (The House version of the bill would get rid of the deduction for income and sales taxes but would cap — not eliminate — the property-tax deduction.)
This, by the way, is how the Red-State Republicans are planning on fucking over the Blue States. People in New York, California, Connecticut, Washington, etc with very high local taxes are going to be boned. Taking a look at the charts in that article, I am either going to pay 3K less or 2K more a year. Since I give a lot of money to charity, itemize, track all my state, local, sales and property taxes, I'm sort of fucked. The bigger standard deduction will take some of the hurt away, but I will have to add more to my 401(k) to offset the loss of the local tax deductions.
This bill is going to suck for everyone that makes less than 400K a year, itemizes deductions, has medical bills, pays high local taxes, has student loan debt, pays child support and/pr alimony or otherwise does the right thing and saves and lives within their means.
And they are projecting it to cost $1.5Trillion over 10 years. While we are still fighting two wars, need to drop $5Trillion on fixing our infrastructure, our schools are falling apart and AND AND AND.