IRS sets limited conditions for people to prepay property taxes, stirring tax law confusion


As the blue state liberals dance faster trying to avoid paying their fair share.


We have democratic States claiming the tax cuts are unconstitutional and target democratic States New York Governor HOMO plans to take it to court .


One has to wonder how a deduction given to states and then limid is unconstitutional.

The new U.S. tax code targets high-tax states and may be unconstitutional, New York Governor Andrew Cuomo said on Thursday, saying that the bill may violate New York residents’ rights to due process and equal protection.

I would seem the resident of NY have a case against their sam and local governments for punitive taxation.


That’s exactly the way I see it too . It’s the State that imposes the unreasonable HIGH property tax , so it’s the State that needs to be taken to court .


I see two issues here. One of course is the high tax states that always seem to wave their fingers at other low tax states as sucking up federal resources while it is equally true that the high tax states live off the back of these deductions. They get their federal aid via stealth.

The other thing that I see playing out is a ‘states rights’ dynamic. If states want to keep their tax receipts in state then they must accept that the use of the federal government to set universal policy harms their efforts to grow their receptive states as they see fit. More and more as things like… for instance… blacks saying that they want segregated facilities and curtain ‘liberal’ companies exert their rights to conduct their business as they see fit and states claiming federal overreach with this or that policy… we are moving ever closer to an America where the power moves back to the states. When that happens the push towards pure democracy in moves like the 17th amendment will be challenged and the rights of private business will finally push back against articles II and VII of the 1964 civil rights act. Progressives what control where they want it but if the US is a nation of law, it can only be one way or the other.

Trump is doing good work in creating these discussion and unfortunately he is being very disruptive to the progressive game. His killing of Obama’s EO was seen as a slight to illegals… it wasn’t… it was putting the responsibility for immigration policy back in the hands of congress where it belongs. This tax move now puts all states on equal footing with regard to federal funds… Every individual receives the same federal services and no state gets to double dip. This will cause states to rethink their use and need for federal power…


The guidance about property taxes is that they can be paid before Dec 31, and deducted in 2017, if the property owner has already been billed for the taxes (meaning they have already been levied). If they have not been billed, it becomes more questionable.

Pay attention to how the GOP whacked the merely affluent who work for a living for the benefit of the super rich is going to be politically potent. The reporting about average property taxes obscures that there will be whacking of the merely affluent who work for a living in many, many more places than the great states of NJ, NY and CA (where nearly every one of the merely affluent will be whacked). This whacking is not the quantitatively most damaging part of the bill. I expect it to be especially potent for the disengaged physician or dentist who got disadvantaged “pass through” treatment, and a SALT hit, so that Ivanka Trump can avoid estate taxes, and so that Bob Corker can be richer.


Really always thought the super rich paid massive state income and property taxes.

But the politics of jealousy and envy rule as always with some.


Way to avoid the point @LouMan

@BCarmel it sounds like the IRS has made an administrative ruling not to allow prepayment of SALT. This is going to end up in the courts and a battle that in which the anemic IRS probably doesn’t have the money or the belly to withstand. Ironically, the same Republicans that have defunded the tax collecting authority are now demanding that the IRS actually enforce tax collection.

Politically, this is awful for Reps heading into mid-terms. This won’t be a story about “a big, beautiful tax cut…the biggest ever…believe me,” this will be headlines of court fights so the middle class doesn’t pay more to subsidize the rich.


It may not be for the high tax states however the rest of the country will not feel the pinch of losing deductions as their state/local/property taxes are not 10K.

Why should the rest of the country subsidize the high tax states like NJ, NY, California as they have been for so many years?

All states are being treated equally, everyone will have the same tax break so high tax states are not being single out. Perhaps the high tax states should re-evaluate their taxing system and reduce taxes.

A question. What is California, NJ, NY doing that the rest of the country isn’t doing that costs so much? Maybe it will force a reset and force the high tax states to lower their taxes which people would applaud.

Not everyone in the country is looking for anything and everything to hammer the GOP and president with as you seem to be.

p.s. It is now law. Seeing the IRS would do no good. They will likely hav to sue the Federal Government and I suspect they would fight it to the SCOTUS as they have already a number of times.

Middle class subsidizing the rich, that is a great party line so well echoed by progressives and the media which we all know is total BS.


Remember the last time Republicans controlled all branches of government? They bankrupted the world. It was in the news. Look it up.

It may have started with President W Gilligan’s handouts. I got a check for $800, because I have two kids. The morons thought it was great, but I saw it as emptying the treasury and squandering Clinton’s surplus. Joe 6-pack got a free check from the former President Most Stupid, and then he lost his job. And the Democrats came in and fixed it.

Now we have the weaponized tax plan, designed to hurt blue states and comfortable democrats and to send more cash to the unproductive and empty red states.

There will be no pain in 2018. We’ll file our 2018 taxes in 2019. Joe 6-pack gets a few more bucks a week, and that’s maybe all he needs to stay loyal to the guy who gives him a hoagie after stealing all the hoagies. “At least I got my hoagie!” he’ll say.

My SALT deduction last year was $10,700.

Democrats have to figure out how to make that pain real now.


They could all resign for office through out the entire county.

That should do the trick.


Say what you will, but the reality is the GOP tax bill will likely damage GOP voters and that politicians who supported it. On the GOP voter front, I expect lots of them to be mad. Insult is added to injury since the changes are whacking people 12 days after the bill was passed, with no real time to adjust.


As you clearly have not read the law and rely on the pundits you like best that is considered, YOUR OPINION.

p.s. I read the law.


But we should not forget Ronald Reagan’s truism that it is not that we are taxed too little, it is that the government spends too much.


There is really good evidence that the small number of dollars appearing in each paycheck will go unnoticed. There is no good reason to think this will give much cover.


And where is that evidence???

You seem to think the money taken in taxes is actually the governments mony and not the person that earns it.


I think that much of the ‘defunding’ of agencies is more about preventing agency administrative rule making and shifting that job back to a congress that has become rather lazy in writing good law and less about collection… that is the only real function of the IRS… follow the code as written by congress, collect the appropriated taxes accordingly and quit making up rules…


‘Entitlements’ being what they are and the constant need for one party to push for free everything as a ‘platform of popularity’, make selling a large tax cut impossible… Its hard to get people use to the idea that their success is really far more dependent on their own decisions than that of the government… But of course we have changed the subject now haven’t we… we’ve gone from costing everyone but the upper earners to … the extra you get won’t mean anything… Well, to those who know how to budget… it will…