Friday, February 8, 2019

WHY POSTS HERE ARE STOPPING UNTIL FURTHER NOTICE

Your blogger is in Washington, D.C., serving as Senior Economist on the staff of the Vice Chair of the Joint Economic Committee of the Congress.

His first assignment is to prepare a report on the economic impact of the cap on the state and local tax deduction that was incorporated in the Tax Act of 2017 (originally called the Tax Cuts and Jobs Act), passed by Congress and signed by the President in December 2017. This cap limits the deduction from taxable federal income to $10,000 for a married couple filing jointly.

If you have any views or information on the economic impact on you, your business, your community, or your state, please send it to John_Tepper_Marlin@jec.senate.gov.

Friday, February 1, 2019

DID YOUR 2018 TAX FALL? (Beware the Ides of April)

On Long Island, NY for middle-income folk, tax refunds are not matching expectations. The cap on state and local taxes (SALT), including both property taxes and income taxes (or sales taxes in states with no state or local income tax) is taking away the benefits of tax cuts on incomes for many taxpayers. The most-affected states by the cap on SALT deductibility are New York, Connecticut, New Jersey and California, in that order. Beware the Ides of April, i.e., April 15.

Comparing federal taxes paid on 2018 income with taxes paid on 2017 income, here are some early numbers. Please send any figures you have, or find online, to john@cityeconomist.com and I will add them. If you can't remember your prior-year tax bills, you can get them here from the IRS: https://bit.ly/2WMgpuG.