Daily State Tax

State tax deductions and the Alternative Minimum Tax

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From Frank Sammartino at the Tax Policy Center:The Complex Relationship Between The State And Local Tax Deduction And The Alternative Minimum Tax.”

“The House Republican leadership and the Trump Administration want to repeal the state and local tax (SALT) deduction and the individual Alternative Minimum Tax (AMT). But as policymakers consider the combined proposal, they should be careful about the sometimes-surprising ways they interact with one another.

AMT repeal, which has widespread support on Capitol Hill, would primarily benefit high-income households. Over 5 million households pay more each year in individual income tax due to the AMT, the vast majority with annual income over $200,000.”

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Economists react to Trump’s tax plan

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From The New York Times:Trump Tax Plan Will Not Bolster Growth, Economists Say.”

President Trump says the perfect medicine for the economy’s sluggish growth is a big tax cut.

Mr. Trump and his advisers say that leaving more money in the hands of businesses and consumers will lead to more spending and investment, lifting economic growth, which has been stuck in a 2-percent-a-year rut.

But a range of economists, both conservative and liberal, are highly skeptical that a tax cut is the cure for what ails the economy. They say Mr. Trump has little opportunity to increase economic growth in the next few years because the economy is already growing about as fast as it can. The government’s focus, they say, should be on raising the economy’s speed limit, for example, by encouraging investments that increase productivity.
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Wall Street angst over tax reform

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From The Hill:Tax reform becomes Wall Street obsession.”

Financial analysts and investors are on constant alert for any crumb of news from Washington about tax reform as they try to game out which companies will win big and how it will affect profits going forward.

But industry sources tell The Hill that the high hopes for a tax overhaul that fueled a stock rally after President Trump’s election are starting to fade, due in part to the slow pace of legislating and the administration’s decision to release a tax plan with few details.

“There was a huge disconnect between Washington and New York with regards to tax reform,” said a former Senate aide now on K Street. “Folks within the business community are starting to realize that the aggressive agenda that was put forth by this administration in the early days was a pipe dream.”

Behind Trump, who campaigned on reshaping the tax system to unlock economic growth, congressional Republicans are laboring toward the first major rewrite of the tax code since 1986.
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Dallas County Judge Clay Jenkins proposes cutting property tax rate (again)

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From The Dallas Morning News,Dallas County Judge Clay Jenkins proposes cutting property tax rate.”

For the second year in a row, Dallas County Judge Clay Jenkins will seek to cut the county property tax rate “to help working families.”

Property values across the county rose by 11 percent this year, but after owners protest their assessments, officials expect the final tally to mark a 7.2 percent rise over last year. That stands in contrast to a 2.7 percent increase in the average worker’s wages, Jenkins said this week.

Meanwhile, County Commissioner John Wiley Price said Jenkins was engaging in “political posturing” the year before he runs for re-election. Price said the county needs the tax money to keep bringing staff salaries in line with other employers in the region, as well as update its equipment and buildings.

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Law School

Trump’s budget proposal to axe major student loan forgiveness program

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From Slate’s Money Box:Trump’s Budget Would Kill a Major Student Loan Forgiveness Program, but Only for New Borrowers.”

As was widely expected, President Trump’s new budget calls for eliminating a major student loan forgiveness program designed to help government and nonprofit workers, such as lawyers, teachers, and social workers.

Those who have already taken on debt for school may not need to worry for now, however, because it appears the administration only wants to end the program for new borrowers.

The White House is proposing an overhaul of the student lending system that would streamline many of the options the government currently offers borrowers for paying down their debts. As part of those reforms, it would end the Department of Education’s Public Service Loan Forgiveness program, or PSLF, which wipes borrowers’ balances after they spend 10 years working either for a government or nonprofit employer.
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