Is your home worth $2 million? If not, the current House version of the tax bill (supported by Fred Upton) is not written to help you.
This week I will investigate the proposed tax plans. The House and Senate are deadlocked, with the fiscal irresponsibility, in the form of budget-busting gifts to the ultra-wealthy, shown by House Republicans proving too blatant for the Senate to accept.
The gift under investigation today is the increase, to $10,000, in the allowed property tax deduction.
How would this will play out in Michigan? As a state, our property is taxed at the 7th highest rate in the nation. As a percentage of income, the residents of Kalamazoo County are in most heavily taxed ten percent of all counties in the US. St. Joseph County, the lowest in our district, is in the most heavily taxed quartile of all counties in the US, based on percentage of income paid in property taxes.
How is this increased deduction a gift to the wealthiest rather than relief for the working class? If you live in Kalamazoo County and would like to take full advantage of this deduction you need to own a home with a market value of about $1.3 million. If you are in St. Joseph County, your home has to be worth about $1.8 million to qualify for the full deduction.
I believe our tax code needs to be simplified and revised to spur the economy and improve the lives of our citizens. We can not do that by shifting the tax burden off the wealthy and onto the middle and working class. Help me #CreateTheChange we need in our tax policy by demanding the House version be scrapped and a new, equitable system of taxation implemented. #BenacForCongress
All numbers are estimates, but based on figures publicly available from the state of Michigan, the Tax Foundation, and the IRS.