|Statement||prepared for the Subcommittee on Intergovernmental Relations of the Committee on Governmental Affairs, United States Senate, by the Congressional Research Service, Library of Congress.|
|Series||S. prt -- 98-77., S. prt -- 98-77.|
|Contributions||United States. Congress. Senate. Committee on Governmental Affairs. Subcommittee on Intergovernmental Relations., Library of Congress. Congressional Research Service.|
|The Physical Object|
|Pagination||ix, 98 p. :|
|Number of Pages||98|
More specifically, in states where federal deductibility implies a relatively low cost of using deductible personal taxes (including income,sales and property taxes), there is greater reliance on those taxes and less reliance on business taxes and other revenue effect of deductibility on the state-local financial mix implies that deductibility has a much lower cost Author: Martin Feldstein and Gilbert Metcalf. (). Limiting state-local tax deductibility in exchange for increased general revenue sharing: An analysis of the economic effects. (). Measuring state jiscal capacity: Alternative methods and their uses. (). Office of the President. (). Optimal state tax design. (). Optimal tax perturbations. ().Author: George Zodrow. Under current law if a taxpayer itemizes, they are able to deduct the income taxes they paid to state and local governments. For instance, if a taxpayer had an AGI of $70, and paid $1, in taxes to their state and local governments (sales or income). The deduction for state and local taxes, including general sales taxes, if elected instead of income taxes, is limited to $10, ($5, if married filing separately). See the Instructions for Schedule A (Form or SR) for more information.
Since it relates to , for Federal income tax purposes the payment qualifies as a tax deduction for tax year False, the amount is deductible in T/F Individuals can elect to deduct their state income taxes, their local income taxes, and their sales/use taxes paid as an itemized deduction. Limiting State-Local Tax Deductibility in Exchange for Increased General Revenue Sharing: An Analysis of the Economic Effects," Congressional Research Service, (). Limiting State-Local Tax Deductibility: Effects Among the States,"Author: Dick Netzer. The state and local tax (SALT) deduction is one of the largest federal tax expenditures, with an estimated revenue cost of $95 billion in and $ billion over File Size: KB. If the Treasury Department and the IRS were to allow taxpayers to claim a full charitable contribution deduction for contributions made in exchange for state tax credits, this treatment would result in significant federal tax revenue losses that would undermine the limitation on the deduction for state and local taxes in section (b)(6).
The federal tax code allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their tax returns. Gifts of donated property, clothing, and other noncash items have long been an important source of revenue for many charitable organizations and a popular deduction. The deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Levy Limit: A legal limit on the amount of revenue raised by the property tax or on the rate of growth in property tax revenues. Assessment Limit: A legal limit on annual increases in assessed values that either freezes such values or ties such increases . Effective for tax years beginning after 12/31/, a small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less for the 3 prior tax years and (b) is not a tax shelter (as defined in section (d)(3)). See section (c) and section A(i).