CDZ Gross Wages v. Aftertax Income

[william the wie]

We found out this week that it is more profitable/cheaper to hire more workers with lower tax bills, roughly 33% cheaper because of lower federal taxes. But in some jurisdictions where the 4K SALT deduction caused wage decreases aftertax income went down and workers got that bad word. Anyone have a quick guide to where aftertax income went down?

 

[Picaro]

Haven't paid any attention to that, since I support doing away with the deduction, and also deductions on interest paid. States screw over people moving out of state by not allowing them any Federal deductions on their state taxes that are allowed while residents there, so why should the Feds give deductions for state taxes? In any case, it acts as a break on states increasing taxes to make up for smaller Federal pork spending because of decreases in Federal revenue; that's kind of the point, playing whack-a-mole to partially prevent wiping out any benefits from a Federal tax decrease.

Not that the decrease in Federal taxes means much to the bottom half of income earners anyway. Most of those passing tax bills seem to think everybody makes as much as they do, which of course isn't even close to reality.

Not really sure why it would decrease already low incomes; maybe employers making up the difference in their own decrease in personal incomes or something. Did the Bills also take the deductions away from business expense deductions, or just personal income tax deductions?

 

[usmbguest5318]

We found out this week that it is more profitable/cheaper to hire more workers with lower tax bills, roughly 33% cheaper because of lower federal taxes. But in some jurisdictions where the 4K SALT deduction caused wage decreases aftertax income went down and workers got that bad word. Anyone have a quick guide to where aftertax income went down?

Who is "we" and where is the documentation of this finding?

 

[william the wie]

So far as I know decreasing deductions apply only to individuals. But the increasing SALT in the Blue wall is an invitation to arson as a means of financing out of the offending state.

 

[usmbguest5318]

So far as I know decreasing deductions apply only to individuals. But the increasing SALT in the Blue wall is an invitation to arson as a means of financing out of the offending state.

Is that your response to the request posed in post #3?

 

[Picaro]

So far as I know decreasing deductions apply only to individuals. But the increasing SALT in the Blue wall is an invitation to arson as a means of financing out of the offending state.

One of the reasons the deductions need to be done away with is that it benefits those with the most income while not benefiting lower incomes at all, plus it allows people to think their local and state taxes are lower than they really are, to boot. This is why you see supposed 'conservatives' and right wingers still voting for their local Hero while out of the other sides of their mouths sniveling about 'All Those Other Guy's Candidates Need To Go!'.