- Sep 19, 2011
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SALT ------First, by allowing taxpayers the ability to deduct state and local taxes (SALT), taxpayers avoid being taxed twice on the same income.
"Double Taxation" is where a shareholder pays taxes on income from dividends.
A) Corporation earns profit.
B) Pays Federal taxes on profit.
C) Distributes dividends.
D) Dividend recipient must count dividends as income.
E) Federal taxes on total income, including dividends.
DOUBLE TAXATION!
Now as far as who uses SALT deductions.
Most Americans Don't Itemize on Their Tax Returns - Tax Foundation
62% of New Yorkers DON"T ITEMIZE so for them taking away the deduction for SALT deductions is a non-issue.
61% of Californians DON"T ITEMIZE!
65% of all Federal Tax returns ARE NOT ITEMIZED!
"Double Taxation" is where a shareholder pays taxes on income from dividends.
A) Corporation earns profit.
B) Pays Federal taxes on profit.
C) Distributes dividends.
D) Dividend recipient must count dividends as income.
E) Federal taxes on total income, including dividends.
DOUBLE TAXATION!
Now as far as who uses SALT deductions.
Most Americans Don't Itemize on Their Tax Returns - Tax Foundation
62% of New Yorkers DON"T ITEMIZE so for them taking away the deduction for SALT deductions is a non-issue.
61% of Californians DON"T ITEMIZE!
65% of all Federal Tax returns ARE NOT ITEMIZED!